Workmen's  Compensation  Law 


of  the 


STATE  OF  KENTUCKY 


Effective  August  1st,  1916 


Workmen's  Compensation  Law 


of  the 


State  of  Kentucky 


Reprinted,  May,  1916 


Copyright,  1916,  by 

F.  ROBERTSON  JONES 

New  York 


CONTENTS 

PAGE 

Digest  of  the   Workmen's  Compensation  Law 3 

Text  of  the  Workmen's  Compensation  Law li 


Digest  of   the    Kentucky    Workmen's 
Compensation   Law* 


TITLE,   ETC 

Senate  Bill  No.  40,  Laws  of  1916;  approved  March  23,  1916.  Adminis- 
trative provisions  effective  April  i,  1916;  liability  provisions  effective  August 
i,  1916  (§81). 

SYSTEM    PROVIDED   FOR 

Compensation,  elective  (§3),  with  insurance  or  security  (§§63,  84-100). 
Administered  by  Workmen's  Compensation  Board  of  three  members,  one 
for  each  of  three  districts  into  which  State  is  divided  (§§39-45). 

HOW   ELECTED 

Employer  elects  by  filing  written  notice,  in  prescribed  form,  with  the 
Board  (§73).  Employee  elects  by  signing  prescribed  form  of  notice  to  be 
filed  with  employer  (§  74).  In  case  of  employments  not  subject  to  the  Act, 
employer  and  employees  may  elect  to  come  under  the  Act  by  joint  application 
to  the  Board,  for  period  stated  in  application  (§  i). 

HOW    ELECTION    CHANGED 

Employer  may  change  his  election  by  filing  written  notice  with  the  Board, 
by  personal  written  notice  to  employees  or  posting  same  at  place  of  business 
for  at  least  a  week.  Employee  may  change  election  by  filing  with  employer 
written  notice  of  withdrawal,  specifying  date  on  which  effective  (§76).  As 
to  employments  not  subject  to  the  Act,  acceptance  is  binding  for  period  stated 
in  application  and  until  written  revocation  is  filed  with  the  Board  (§  i). 

ALTERNATIVE    LIABILITY 

If  employer  does  not  elect  to  come  under  the  Act,  he  is  liable  to  injured 
employee  for  damages,  with  the  defenses  of  contributory  negligence,  fellow 
servant's  fault  and  assumption  of  risk  abrogated  (§76a).  If  employer  elects 
to  come  under  the  Act  and  the  employee  does  not,  such  defenses  are  avail- 
able in  case  of  action  by  employee  (§76b). 

EMPLOYMENTS     COVERED 

All,  including  municipal  corporations,  in  which  five  or  more  are  regu- 
larly employed,  except  domestic  service,  farm  labor,  steam  railways  and 

*  The  headings  of  this  Digest  conform  in  substance  and  order  with  those  of  the  "Digest 
of  Workmen's  Compensation  Laws  in  the  United  States  and  Territories"  (compiled  by  F. 
Robertson  Jones  and  published  by  the  Workmen's  Compensation  Publicity  Bureau,  80 
Maiden  Lane,  New  York  City) — so  that  the  former  supplements  the  latter. 


34291 


common  carriers  Bother  than  steam  railways  which  are  subject  to  a  Federal 
liability  law  (§§  1-2).  Excepted  employments  may  be  brought  under  the  Act 
by  joint  application  of  employer  and  employee  (§i). 

EMPLOYMENT    IN    INTERSTATE    COMMERCE 

The  Act  does  not  extend  to  steam  railways  or  to  common  carriers  other 
than  steam  railways  for  which  a  rule  of  liability  is  provided  by  Federal 
law  (§i). 

INJURIES    COVERED 

Personal  injuries  by  accident  arising  out  of  and  in  the  course  of  em- 
ployment, unless  wilfully  self-inflicted  or  caused  by  wilful  misconduct  or 
intoxication.  Not  to  include  disease  except  where  it  is  the  natural  and  direct 
result  of  a  traumatic  injury  by  accident,  nor  the  results  of  a  pre-existing 
disease  (§§  I,  3).  Special  restrictions  governing  injuries  producing  hernia 
(§4a). 

NOTICE    OF    INJURY    AND    CLAIM    FOR    COMPENSATION 

Written  notice,  with  certain  particulars,  must  be  given  to  employer  as 
soon  as  practicable  after  accident.  Defect  in  notice  does  not  invalidate  claim 
unless  employer  was  misled  to  his  injury.  Want  of  notice  or  delay  in  giving 
same  does  not  bar  claim  if  occasioned  by  mistake  or  other  reasonable  cause, 
or  if  employer  had  knowledge  of  injury.  Claim  must  be  made  within  a  year 
after  accident,  death  or  suspension  of  payments  (§§23,  33-36). 

WAITING    PERIOD 

No  compensation  is  payable  for  first  two  weeks  of  disability.  Com- 
pensation begins  on  first  regular  pay  day  after  expiration  of  two  weeks' 
period  (§7). 

MEDICAL   AND   SURGICAL   AID 

Employer  must  furnish  medical,  surgical  or  hospital  treatment,  etc.,  as 
reasonably  required  during  90  days  after  injury,  unless  Board  otherwise 
directs  within  that  time ;  maximum  $100.  In  case  of  operation  for  hernia, 
maximum  liability  is  raised  to  $200,  and  employee  is  entitled  to  26  weeks' 
compensation  in  addition.  Board  may  under  certain  circumstances  require 
a  change  of  physician.  Charges  for  treatment  are  limited  to  those  prevailing 
in  the  community,  and  are  subject  to  regulation  by  the  Board.  Employee  who 
unreasonably  refuses  to  submit  to  treatment  forfeits  compensation  (§§4-6). 


COMPENSATION    FOR    TOTAL    DISABILITY 

65  per  cent  of  average  weekly  earnings,  maximum  $12,  minimum  $5, 
weekly,  maximum  period  eight  years,  maximum  amount  $5,ooo,  including 
partial  disability  payments,  if  any.  Certain  severe  injuries  deemed  to  con- 
stitute permanent  total  disability  (§16). 


COMPENSATION  FOR  PARTIAL  DISABILITY 
65  per  cent  of  loss  of  earning  power,  maximum  $12  weekly,  maximum 
period  335  weeks,  including  period  of  total  disability  payments,  if  any. 
Special  schedule  of  compensation  for  loss  of  certain  members,  etc.  Em- 
ployee's refusal  to  accept  suitable  employment  during  partial  disability,  unless 
justified,  forfeits  compensation  for  period  of  refusal  (§§  17-19). 

COMPENSATION    FOR    DEATH 

If  death  results  from  accident  within  two  years,  in  all  cases,  reasonable 
burial  expenses,  maximum  $75.  In  addition,  to  total  dependents,  65  per  cent 
of  average  weekly  earnings,  maximum  amount  $4,000,  maximum  period  335 
weeks,  including  period  of  disability  payments,  if  any.  To  partial  dependents, 
payments  based  on  foregoing  schedule  and  proportioned  to  measure  of  de- 
pendency, maximum  amount  and  period  same  as  above.  Compensation  to 
cease  upon  death  or  marriage  of  dependent.  If  no  dependents,  $100  to  per- 
sonal representative  of  deceased  (§§12,  15). 

EFFECT    OF    PREVIOUS    DISABILITY 

If  previously  injured  employee  sustains  subsequent  injury  resulting  in 
a  condition  to  which  both  injuries  contribute,  employer  in  whose  employment 
the  later  injury  is  received  is  liable  for  compensation  based  on  such  resulting 
condition,  less  amount  payable  for  prior  injury  (§20). 

AVERAGE    WAGES— HOW    COMPUTED 

Average  weekly  wages  to  be  based  on  earnings  while  working  at  full  time. 
If  employee  at  the  time  of  injury  is  employed  at  higher  wages  tha.n  earlier 
in  the  year  (unless  such  employment  is  seasonal),  only  such  higher  wages 
to  be  considered  in  computing  average  weekly  earnings  (§24). 

WHO   ARE    DEPENDENTS 

Certain  persons  presumed  to  be  wholly  dependent;  in  other  cases,  de- 
pendency to  be  determined  in  accordance  with  facts  at  time  of  accident. 
Dependents  are  limited  to  parents,  spouse,  father-in-law,  mother-in-law,  grand- 
parents, child,  grandchild,  brother,  sister,  or  one  living  in  household  of 
employee  at  time  of  accident.  Partial  dependency  may  be  determined  by 
proportion  of  employee's  earnings  contributed  to  dependent  during  year 
preceding  injury;  otherwise  Board  may  fix  degree  of  dependency.  Pay- 
ment of  death  benefits  to  supposed  dependent  or  to  one  subsequent  in  right 
releases  employer  in  absence  of  written  notice  of  prior  claim  (§§12-15). 

NON-RESIDENT  ALIENS 

Non-resident  alien  dependents  are  excluded  from  benefits  of  the  Act, 
except  widows  and  children,  who  are  entitled  to  one-half  the  amount  pro- 
vided for  residents;  and  employer  may  at  any  time  commute  such  payments 
to  the  then  value  thereof  (§22). 


MEDICAL    EXAMINATION 

Injured  employee  must  submit  to  medjcal  examination  at  reasonable 
times  and  places  upon  request  of  employer  or  Board.  Employee  may  have 
his  own  physician  present.  Refusal  to  submit  forfeits  right  to  compensation 
for  period  of  continuance.  Employer's  physician  may  visit  employee  at 
reasonable  times  (§37).  Board  may  appoint  physician  for  this  purpose  upon 
application  of  either  party  (§58).  Special  regulations  governing  examination 
for  hernia  (§4a). 


SETTLEMENT  OF  CLAIMS  AND  DISPUTES 
Terms  of  compensation  may  be  settled  by  agreement,  subject  to  approval 
of  Board  (§48)  ;  otherwise,  upon  application  of  either  party  as  soon  as  pos- 
sible after  disagreement,  by  the  Board  or  a  member  thereof  or  a  referee 
authorized  by  the  Board  (§§49,  50,  60).  If  first  hearing  was  not  held  before 
full  Board,  application  for  review  may  be  made  to  the  Board  within  seven  days 
after  award  (§51). 

RIGHT    OF   APPEAL 

Board's  award  is  final  as  to  questions  of  fact;  but  either  party  may 
within  20  days  file  a  petition  for  a  review  by  the  Circuit  Court  upon  certain 
specified  grounds.  Where  amount  involved  is  sufficient  under  existing  laws, 
judgment  of  Circuit  Court  may  be  reviewed  by  Court  of  Appeals  (§§52-55). 

MODIFICATION    OF    AGREEMENTS    AND    AWARDS 
Upon  its  own  motion  or  upon  application  of  any  party  interested,  the 
Board  may  at  any  time  review  award  and  end,  diminish  or  increase  payments 
on  the  ground  of  changed  conditions   (§21). 

COMMUTATIONS 

After  six  months'  payments,  upon  application  of  either  party  and  notice 
to  the  other,  if  Board  finds  it  for  the  best  interests  of  either  party  and  that 
it  will  no  subject  the  employer  or  insurer  to  undue  risk  of  overpayment,  future 
compensation  may  be  commuted  to  a  lump  sum  equal  to  the  present  value  of 
probable  future  payments  discounted  at  5  per  cent,  per  annum.  The  Board 
may  direct  such  payments  to  be  made  to  a  trustee,  thus  discharging  employer 
and  insurer  (§§26-27). 

PREFERENCE 

The  right  of  compensation  has  the  same  preference  or  priority  for  the 
whole  thereof  against  the  assets  of  the  employer  as  is  allowed  for  unpaid 
wages  for  labor  (§31). 

ASSIGNMENTS  AND   EXEMPTIONS 

Claim  for  compensation  is  not  assignable,  and  is  exempt  from  claims  of 
creditors  (§32). 


HOW    COMPENSATION    IS    SECURED 

Assenting  employer  is  required  to  insure  his  liability  for  compensation  in 
some  authorized  corporation  or  association,  or  furnish  the  Board  with  satis- 
factory proof  of  financial  ability  to  make  payments  direct  and  deposit  accept- 
able bond,  indemnity  or  other  security  (§63). 

METHOD    OF   PAYMENT    AND    PROCEEDINGS    TO  COLLECT 

Compensation  is  payable  directly  to  employee  or  dependent  by  employer 
or  insurer,  on  regular  pay  days,  with  interest  at  6  per  cent,  per  annum  on 
each  instalment  from  time  it  is  due  until  paid  (§7).  The  Board  may,  upon 
application  of  either  party,  order  payments  made  monthly  or  quarterly 
(§25).  Any  party  in  interest  may  file  in  Circuit  Court  a  certified  copy  of 
memorandum  of  agreement  approved  by  the  Board,  or  of  the  Board's  award, 
whereupon  the  Court  must  render  judgment  in  accordance  therewith,  which 
may  be  enforced  as  other  judgments  duly  rendered  (§  56). 

ATTORNEYS'    LIENS    AND    FEES 

Fees  of  attorneys,  physicians,  etc.,  are  subject  to  approval  of  the  Board. 
Attorney's  fee  is  limited  to  15  per  cent,  of  amount  of  recovery  up  to  $1,000 
and  10  per  cent,  of  any  recovery  in  excess  of  $1,000.  The  Board  may  deny 
or  reduce  fee  upon  proof  of  solicitation  of  employment  (§59). 

MINORS    AND    INCOMPETENT    PERSONS 

Minors  of  legal  working  age  are  deemed  sui  juris  for  purpose  of  Act; 
but  lump  sum  awarded  must  be  paid  to  guardian  (§  n).  Compensation  of 
insane  person  is  to  be  paid  to  committee  (§28).  No  limitation  of  time  is  to 
run  against  mentally  incompetent  person  or  minor  dependent  while  he  is 
without  a  guardian,  committee  or  next  friend  (§38).  Guardian  or  personal 
representative  of  minor  illegally  employed  may  claim  compensation  or  sue 
for  damages  (§30). 

WHERE  INJURY   IS   CAUSED   BY   THIRD   PARTY 
Where  injury  is  caused  by  third  party,  employee  may  elect  to  claim  com- 
pensation from  employer  or  to  sue  third  party  for  damages,  but  may  not 
collect  from  both.     If  compensation  is  awarded,  employer  is  subrogated  to 
employee's  right  of  action  against  third  party  (§9). 

PRINCIPAL    AND    SUB-CONTRACTOR 

A  principal,  intermediate  or  sub-contractor  is  liable  for  compensation  to 
injured  employees  of  a  sub-contractor  if  injury  occurs  on  premises  under  the 
control  or  management  of  the  former,  but  is  entitled  to  indemnity  from  sub- 
contractor. Claim  must  be  presented  in  the  first  place  to  immediate  employer, 
and  in  case  of  full  recovery,  claim  against  principal  or  intermediate  contractor 
»s  barred  (§  10). 


SUITS    FOR    DAMAGES 

If  both  employer  and  employee  have  elected  to  come  under  the  Act,  the 
employer  is  released  from  all  other  liability  for  injury  sustained  by  employee, 
except  that  where  injury  results  from  deliberate  intention  of  employer,  em- 
ployee or  dependents  may  elect  to  take  compensation  or  to  sue  for  damages 
as  before  Act  was  passed  (§3).  Same  option  exists  in  case  of  injury  to 
minor  illegally  employed  (§30),  or  where  employer  has  failed  to  file  with  the 
Board  required  evidence  of  compliance  with  provision  for  securing  com- 
pensation (§63). 

ACCIDENT    PREVENTION 

If  accident  is  due  to  employer's  intentional  failure  to  install  safety  ap- 
pliance, etc.,  compensation  is  to  be  increased  15  per  cent.  If  due  to  em- 
ployee's intentional  failure  to  use  the  same,  or  to  obey  reasonable  safety 
regulation,  compensation  is  to  be  reduced  15  per  cent.  (§29).  Directors 
of  Employees'  Insurance  Association  must  make  and  enforce  reasonable 
rules  for  prevention  of  accidents  on  premises  of  subscribers  (§99). 

REPORTS    REQUIRED 

Assenting  employers  must  report  to  the  Board  all  injuries  causing  absence 
from  work  for  more  than  one  day,  within  a  week  after  occurrence  and 
knowledge  thereof,  on  blank  forms  provided,  and  make  supplementary 
report  upon  termination  of  disability  or  after  sixty  days  (§61).  Such  em- 
ployers must  file  with  the  Board  at  time  of  election,  and  annually  thereafter, 
evidence  of  compliance  with  provisions  for  securing  compensation  (§63). 
Employers  carrying  their  own  risks  must  file  with  the  Board  reports  under 
oath  on  their  pay-rolls  for  the  six  months  ending  October  31,  1916,  for  the 
eight  months  ending  June  30,  1917,  and  annually  thereafter.  Similar  report 
must  be  made  by  insurance  companies  on  amount  of  premiums  received  within 
the  State  (§83). 

POSTING    NOTICES 

Assenting  employer  must  post  conspicuously  at  his  place  of  business, 
notice  of  acceptance  in  form  prescribed  by  the  Board.  Employer  withdraw- 
ing his  acceptance  may,  in  lieu  of  personal  written  notice  to  employees,  post 
notice  of  withdrawal  conspicuously  at  place  of  business  (§76). 

CONTRACTING    OUT 

Subject  to  approval  of  Board,  employer  may  agree  with  employees  upon 
system  of  compensation,  benefit  or  insurance  in  lieu  of  that  provided  by  the 
Act,  but  benefits  must  be  at  least  equivalent  to  those  under  the  Act,  and  if 
contributions  from  employees  are  required,  additional  benefits  must  be  con- 
ferred commensurate  with  such  contributions.  Such  substitute  system  may 
be  terminated  by  the  Board  upon  reasonable  notice  for  good  cause  (§66). 
With  this  exception,  no  contract,  regulation,  etc.,  may  operate  to  relieve 
employer  from  liability  under  Act  (§8a). 


INSURANCE 
General    Provisions. 

Insurance  policies  must  provide  that  notice  to  insured  is  notice  to 
insurer ;  that  they  are  a  direct  obligation  to  beneficiaries,  not  affected  by  want 
of  notice,  and  are  otherwise  subject  to  provisions  of  Act.  Policies  must  be 
approved  as  to  form  by  Commissioner  of  Insurance,  and  must  cover  full 
liability  under  the  Act  unless  employer  has  a  certificate  of  self-insurance 
covering  part  of  his  risk  (§§67-71).  Companies  writing  compensation  in- 
surance are  subject  to  a  tax  of  4  per  cent.- on  premiums  received  within  the 
State,  to  defray  expenses  of  administering  Act.  Similar  tax,  based  on  amount 
of  pay-roll,  is  levied  on  employers  who  carry  their  own  risks  (§83). 

Stock  Companies. 

Employer  may  insure  his  liability  for  compensation  with  any  authorized 
corporation  (§63). 

Mutual  Insurance. 

Employers  are  authorized  to  form  mutual  insurance  associations  or 
reciprocal  or  inter-insurance  exchanges,  subject  to  regulation  by  the  Board 
(§65). 

State  Insurance. 

There  is  no  genuine  state  insurance,  but  the  Act  provides  for  the  organ- 
ization by  the  state  of  the  Kentucky  Employees'  Insurance  Association,  a 
mutual  scheme  similar  to  that  in  Massachusetts  and  Texas,  which,  when 
organized,  stands  on  an  equal  footing  with  private  associations.  Policies  may 
not  be  issued  until  at  least  50  employers,  having  not  less  than  5,000  employees, 
have  subscribed  (§§84-100). 

Regulation  of  Rates. 

Rates  of  compensation  insurance  must  be  fair,  reasonable  and  adequate, 
with  due  allowance  for  merit  rating;  and  discrimination  is  forbidden.  Rates 
must  be  approved  by  the  Board  before  policy  may  be  issued ;  and  all  basic  and 
merit  rating  schedules  must  be  filed  with  the  Board  for  its  approval  (§72). 
Premiums,  assessments,  etc.,  proposed  by  Kentucky  Employees'  Insurance 
Association  must  be  filed  with  Insurance  Department  and  approved  by  Com-, 
missioner  (§§97-98). 

PENALTIES 

For  failure  to  report  accidents,  $25  fine  (§61).  Fraud  in  connection  with 
claim  for  compensation  is  a  misdemeanor,  punishable  by  $50  to  $500  fine  or 
from  10  to  90  days'  imprisonment  (§62).  Destruction,  concealment  or 
alteration  of  employee's  notice  of  acceptance  is  a  misdemeanor,  punishable  by 
$50  to  $200  fine  or  from  10  to  90  days'  imprisonment  (§75).  Deducting 
any  portion  of  insurance  cost  from  employees'  wages  is  a  misdemeanor, 
punishable  by  $100  fine  (§77).  Acting  as  agent  for  insurance  company 


10 


which  has  been  suspended  from  doing  business,  or  making  false  statement  in 
report  of  such  insurance  company's  business,  is  a  misdemeanor,  punishable 
by  $100  to  $1,000  fine  or  from  10  to  90  days'  imprisonment,  or  both  (§83  [5]). 

EXTRA-TERRITORIAL    EFFECT 

Act  extends  to  injuries  sustained  outside  the  state  by  employees  hired 
within  the  state,  in  the  absence  of  express  written  agreement  to  the  con- 
trary (§8). 

CONSTITUTIONALITY 

If  any  part -of  Act  is  held  invalid,  it  shall  not  affect  the  Act  as  a  whole 
or  any  other  part  thereof  (§102). 

MISCELLANEOUS    PROVISIONS 

Municipal  pension  associations  or  funds  are  not  disturbed   by  the  Act 

(§2). 


TEXT  OF  THE  LAW 


SENATE  BILL  NO.  40,  LAWS  OF  1916 

AN  ACT  to  provide  an  elective  system  of  workmen's  compensation  for  in- 
dustrial accidents,  prescribing  the  manner  of  election  and  the  rights  and 
liabilities  of  employers,  employes  and  third  parties;  making  provision 
for  medical  and  surgical  care  of  injured  employes;  establishing  rates 
of  compensation  for  personal  injuries  or  death;  providing  methods  of 
insuring  and  securing  the  payments  of  such  compensation ;  making  minors 
sui  juris  for  certain  purposes;  creating  a  board  to  administer  this  act, 
prescribing  the  duties  powers  and  rights  thereof  and  imposing  a  tax 
upon  insurance  premiums,  also  a  tax  upon  employers  who  carry  their 
own  risk  for  the  maintenance  of  such  board  and  providing  a  system 
of  appeal  to  the  courts  from  the  decisions  of  such  board;  prescribing 
certain  penalties,  with  an  emergency  clause,  and  appropriating  certain 
sums  to  meet  the  expenses  of  putting  this  act  into  effect,  and  repealing 
all  laws  and  parts  of  laws  in  conflict  herewith,  to  the  extent  of  such 
conflict. 

Be  it  Enacted  by  the  General  Assembly  of  the  Commonwealth  of  Kentucky: 

§  i.  This  act  shall  apply  to  all  employers  having  five  or  more  employes 
regularly  engaged  in  the  same  occupation  or  business  and  to  their  employes, 
except  that  it  shall  not  apply  to  domestic  employment,  agriculture,  steam 
railways,  or  such  common  carriers,  other  than  steam  railways,  for  which  a 
rule  of  liability  is  provided  by  the  laws  of  the  United  States.  It  shall  affect 
the  liability  of  the  employers  subject  thereto  to  their  employes  for  personal 
injuries  sustained  by  the  employe  by  accident  arising  out  of  and  in  the  course 
of  his  employment  or  for  death  resulting  from  such  accidental  injury;  pro- 
vided, however,  that  personal  injury  by  accident  as  herein  defined  shall  not 
include  diseases  except  where  the  disease  is  the  natural  and  direct  result  of 
a  traumatic  injury  by  accident,  nor  shall  they  include  the  results  of  a  pre- 
existing disease. 

Any  employers  and  employes  who  are,  by  the  provisions  of  this  section, 
excepted  from  the  provisions  of  this  act  may  subject  themselves  thereto  by 
joint  voluntary  application  to  the  board,  in  writing,  for  such  period  as  may 
be  stated  in  the  application,  which  shall  be  irrevocable  during  such  period  and 
effective  thereafter  until  a  written  revocation  be  filed  with  the  board  or  the 
employment  be  terminated. 

§  2.  The  term  "employer"  as  used  in  this  act  shall  be  construed  to  include 
municipal  corporations  and  any  political  subdivision  or  corporation  thereof, 
and  any  election  with  reference  to  this  act  shall  be  exercised  by  the  law- 


12 

making  or  other  governing  body  thereof;  provided,  however,  that  nothing 
contained  in  this  act  shall  be  construed  as  amending  or  repealing  any  statute 
or  ordinance  relating  to  associations  or  funds  for  the  relief,  pensioning, 
retirement  or  other  benefit  of  any  employes  of  such  municipal  employer,  or 
of  the  widows,  children  or  dependents  of  such  employes,  or  as  in  any  manner 
interfering  with  the  same  as  now  or  hereafter  established. 

§  3.  Whereas,  at  the  time  of  the  injury,  both  employer  and  employe  have 
elected  to  furnish  or  accept  compensation  under  the  provisions  of  this  act 
for  a  personal  injury,  received  by  an  employe  by  accident  and  arising  out  of 
and  in  the  course  of  his  employment,  or  for  death  resalting  from  such 
injury,  within  two  years  thereafter,  the  employer  shall  be  liable  to  provide 
and  pay  compensation  under  the  provisions  of  this  act  and  shall  be  released 
from  all  other  liability,  whatsoever;  provided,  however,  that  if  injury  or 
death  result  to  an  employe  through  the  deliberate  intr/'tion  of  his  employer 
to  produce  such  injury  or  death,  the  employe  or  his  dependent  as  herein 
defined  shall  receive  the  amount  provided  in  this  act  in  a  lump  sum  to  be 
used,  if  they  so  desire  to  prosecute  the  employer,  and  said  dependents  shall 
be  permitted  to  bring  suit  against  said  employer  for  any  amount  they  may 
desire,  that  if  injury  or  death  results  to  an  employe  through  the  deliberate 
intention  of  his  employer  to  produce  such  injury  or  death,  the  employe  or  his 
dependents  as  herein  defined  shall  have  the  privilege  to  take  under  this  act, 
or  in  lieu  thereof,  to  have  a  cause  of  action  at  law  against  such  employer  as  if 
this  act  had  not  been  passed  for  such  damages  so  sustained  by  the  employe, 
his  dependents  or  personal  representatives  as  may  be  recoverable  at  law.  If 
a  suit  is  brought  under  this  section,  all  right  to  compensation  under  the 
provisions  of  this  act  shall  thereby  be  waived  and  void  as  to  all  persons, 
and  if  a  claim  is  made  for  the  payment  of  compensation  or  any  other  benefit 
provided  by  this  act,  all  rights  to  sue  the  employer  for  damages  on  account 
of  such  injury  or  death  shall  thereby  be  waived  and  void  as  to  all  persons. 

Notwithstanding  anything  hereinbefore  or  hereafter  contained  no  employe 
or  dependent  of  any  employe  shall  be  entitled  to  receive  compensation  on 
account  of  any  injury  to  or  death  of  an  employe  caused  by  a  wilful  self- 
inflicted  injury,  wilful  misconduct  or  intoxication  of  such  employe. 

§  4.  In  addition  to  all  other  compensation  herein  provided,  such  medical, 
surgical  and  hospital  treatment,  including  nursing,  medical  and  surgical  sup- 
plies and  appliances  as  may  reasonably  be  required  at  the  time  of  the  injury 
and  thereafter  during  disability,  but  not  exceeding  ninety  days  unless  the 
board  shall,  by  order  made  within  that  time,  otherwise  direct,  not  exceeding 
a  total  expense  to  the  employer  of  more  than  $100  on  account  of  the  benefits 
provided  by  this  section,  to  cure  and  relieve  from  the  effects  of  the  injury  shall 
be  furnished  by  the  employer,  and,  in  case  of  his  refusal  or  neglect  reasonably 
to  do  so,  the  employer  shall  be  liable  for  the  reasonable  expense,  within  the 
limits  of  this  section,  incurred  by  or  on  behalf  of  the  employe  in  providing  the 
same. 

In  the  event  of  an  emergency,  the  employe  shall  have  the  right  to  call  in 
any  available  physician  or  surgeon  to  administer  such  first  aid  as  may  be 
reasonably  necessary  at  the  expense  of  the  employer  within  the  limits  of  this 
section. 


13 

§4a.  In  all  claims  for  hernia  resulting  from  injury  received  in  the 
course  of  and  resulting  from  the  employe's  employment,  it  must  be  definitely 
proved  to  the  satisfaction  of  the  board: 

First.     That  there  was  an  injury  resulting  in  hernia. 

Second.  That  the  hernia  appeared  suddenly  and  immediately  followed 
the  injury. 

Fourth.  That  the  hernia  did  not  exist  in  any  degree  prior  to  the  injury 
for  which  compensation  is  claimed. 

In  all  such  cases  where  liability  for  compensation  exists,  the  employer 
shall  provide  competent  surgical  treatment  by  radical  operation,  the  limits 
of  benefits  payable  under  section  four  hereof  being  increased  to  two  hundred 
dollars  in  such  cases,  if  the  operation  is  performed.  In  case  the  injured 
employe  refuses  to  submit  to  the  operation,  the  employer  shall  have  the  right 
to  a  medical  examination  as  provided  in  section  thirty-seven  hereof.  If  it 
be  shown  by  such  examination  that  the  employe  has  any  chronic  disease  or  is 
otherwise  in  such  physical  condition  so  as  to  render  it  more  than  ordinarily 
unsafe  to  submit  to  such  operation,  he  shall,  if  unwilling  to  submit  to  the 
operation,  be  entitled  to  compensation  for  disability  under  the  general  pro- 
visions of  this  act.  If  the  examination  does  not  disclose  the  existence  of 
disease  or  other  physical  condition  rendering  the  operation  more  than  ordi- 
narily unsafe  and  the  employe,  with  knowledge  of  the  result  of  such  ex- 
amination, thereafter  refuses  to  submit  to  such  operation,  he  shall  be  entitled 
to  compensation  for  disability  under  the  general  provisions  of  this  act  for 
not  exceeding  one  year. 

If  the  employe  submits  to  the  operation,  he  shall,  in  addition  to  the 
surgical  benefits  herein  provided  for,  be  entitled  to  compensation  for  twenty- 
six  weeks.  If  the  hernia  result  in  death  within  one  year  after  it  is  sustained, 
or  the  operation  result  in  death,  such  death  shall  be  deemed  a  result  of  the 
injury  causing  such  hernia  and  compensated  accordingly  under  the  pro- 
visions of  this  act.  This  paragraph  shall  not  apply  where  the  employe  has 
refused  to  submit  to  an  operation  which  has  been  found  by  the  examination 
herein  provided  for,  not  to  be  more  than  ordinarily  unsafe. 

§  5.  If  it  be  shown  that  the  employer  is  furnishing  the  requirements 
provided  by  Section  four  hereof  in  such  manner  that  there  is  reasonable 
ground  for  believing  that  the  life,  health  or  recovery  of  the  employe  is  being 
endangered  or  impaired  thereby,  the  board  may  order  a  change  in  the 
physician  or  other  requirement,  and  if  the  employer  fail  promptly  to  comply 
with  such  order  after  receiving  it,  may  permit  the  employe  or  some  one  for 
him  to  provide  the  same  at  the  expense  of  the  employer  under  such  reasonable 
regulations  as  may  be  provided  by  the  board. 

No  action  shall  be  brought  against  any  employer  subject  to  this  act  by  any 
employe  or  other  person  to  recover  damages  for  malpractice  or  improper 
treatment  received  by  such  employe  from  any  physician,  hospital  or  attendant 
thereof. 

§  6.  All  fees  and  charges  under  Sections  four  and  five  shall  be  fair  and 
reasonable,  shall  be  subject  to  regulation  by  the  board  and  shall  be  limited 
to  such  charges  as  are  reasonable  for  similar  treatment  of  injured  persons 
of  a  like  standard  of  living  in  the  same  community  and  where  such  treatment 


14 

is  paid  for  by  the  injured  person  himself.  In  determining  what  fees  are 
reasonable,  the  board  may  also  consider  the  increased  security  of  payment 
afforded  by  this  act. 

Where  such  requirements  are  furnished  by  a  public  hospital  or  other 
institution,  payment  thereof  shall  be  made  to  the  proper  authorities  conduct- 
ing same.  No  compensation  shall  be  payable  for  the  death  or  disability  of  an 
employe  if  his  death  is  caused,  'or  if  and  in  so  far  as  his  disability  may  be 
aggravated,  caused  or  continued,  by  an  unureasonable  refusal,  failure  or 
neglect  to  submit  to  or  follow  any  competent  surgical  treatment  or  medical 
aid  or  advice. 

§  7.  Except  as  provided  in  sections  four  and  five  hereof,  no  compensation 
shall  be  payable  for  the  first  two  weeks  of  disability,  and  all  compensation 
shall  be  payable  on  the  regular  pay-day  of  the  employer,  commencing  with 
the  first  regular  pay-day  after  two  weeks  after  the  injury,  with  interest  at 
the  rate  of  6%  per  annum  on  each  installment  from  the  time  it  is  due  until 
paid. 

§  8.  Employers  who  hire  employes  within  this  State  to  work  in  whole 
or  in  part  without  this  State,  may  agree  in  writing  with  such  employes  to 
exempt  from  the  operation  of  this  act  injuries  received  outside  of  this  State; 
in  the  absence  of  such  an  agreement,  the  remedies  provided  by  this  act  shall 
be  exclusive  as  regards  injuries  received  outside  this  State  upon  the  same 
terms  and  conditions  as  if  received  within  this  State. 

§8a.  No  contract  or  agreement,  written  or  implied,  no  rule,  regulation 
or  other  device,  shall  in  any  manner  operate  to  relieve  any  employer  in  whole 
or  in  part  of  any  obligation  created  by  this  act  except  as  herein  provided. 

§9.  Whenever  an  injury  for  which  compensation  is  payable  under  this 
act  shall  have  been  sustained  under  circumstances  creating  in  some  other 
person  than  the  employer  a  legal  liability  to  pay  damages  in  respect  thereto, 
the  injured  employe  may  at  his  option  either  claim  compensation  or  proceed 
at  law  by  civil  action  against  such  other  person  to  recover  damages,  or  pro- 
ceed both  against  the  employer  for  compensation  and  such  other  person  to 
recover  damages,  but  he  shall  not  collect  from  both,  and  if  compensation  is 
awarded  under  this  act  the  employer  having  paid  the  compensation  or  having 
become  liable  therefor,  shall  have  the  right  to  recover  in  his  own  name  or  that 
of  the  injured  employe  from  the  other  person  in  whom  legal  liability  for 
damages  exists  not  to  exceed  the  indemnity  paid  and  payable  to  the  injured 
employe. 

§  10.  A  principal  contractor,  intermediate,  or  sub-contractor  shall  be 
liable  for  compensation  to  any  employe  injured  while  in  the  employ  of  any 
one  in*  his  intermediate  or  sub-contractors  and  engaged  upon  the  subject 
matter  of  the  contract,  to  the  same  extent  as  the  immediate  employer.  Any 
principal,  intermediate  or  sub-contractor  who  shall  pay  compensation  under 
the  foregoing  provision  may  recover  the  amount  paid  from  any  subordinate 
contractor  through  whom  he  may  have  been  rendered  liable  under  this  section. 

Every  claim  to  compensation  under  this  section  shall  in  the  first  instance 
be  presented  to  and  instituted  against  the  immediate  employer,  but  such 

*  So  in  certified  copy;   probably  intended  for  "of." 


IS 

proceeding  shall  not  constitute  a  waiver  of  the  employe's  rights  to  recover 
compensation  under  this  act  from  the  principal  or  intermediate  contractor, 
provided  that  the  collection  of  full  compensation  from  one  employer  'shall 
bar  recovery  by  the  employe  against  any  others,  nor  shall  he  collect  from 
all  a  total  compensation  in  excess  of  the  amount  for  which  his  immediate 
employer  is  liable. 

This  section  shall  apply  only  in  cases  where  the  injury  occurred  on,  in 
cr  about  the  premises  on  which  the  principal  contractor  has  undertaken  to 
execute  work  or  which  are  under  his  control  otherwise  or  management. 

§  ii.  A  minor,  except  where  employed  in  wilful  violation  of  any  law  of 
this  State  regulating  the  employment  of  minors,  shall  be  deemed  sui  juris  for 
the  purposes  of  this  act,  and  no  other  person  shall  have  cause  of  action  or 
right  to  compensation  for  an  injury  to  or  death  of  such  minor  employe  or 
loss  of  service  on  account  thereof,  by  reason  of  the  minority  of  such  employe. 
In  the  event  of  the  award  of  a  lump  sum  of  compensation  to  such  minor 
employe,  payment  shall  be  made  to  the  guardian  of  such  minor. 

§  12.  If  death  results  within  two  years  from  an  accident  for  which  com- 
pensation is  payable  under  this  act,  the  employer  or  his  insurer  shall  pay  to 
the  persons  entitled  to  compensation,  or,  if  none,  then  to  the  personal  repre- 
sentative of  the  deceased  employe  reasonable  burial  expenses  of  a  person 
of  the  standard  of  living  of  the  de-ceased,  not  to  exceed  the  sum  of  $75,  and 
shall  also  pay  to  or  for  the  following  persons  compensation  as  follows, 
to-wit : 

(1)  If  there  are  no  dependents,  as  herein  defined,  there  shall  be  paid, 
in  addition  to  the  burial  expenses  and  medical  expenses,  if  any  otherwise 
provided  for  herein,  the  further  sum  of  $100,  payment  to  be  made*  to  the 
personal  representative  of  the  deceased  employe. 

(2)  If  there  are  one  or  more  wholly  dependent  persons,  65%  of  the 
average  weekly  earnings  of  the  deceased  employe,  but  not  to  exceed  $12  nor 
less  than  $5  per  week,  shall  be  payable,  all  such  payments  to  be  made  for  the 
period  between  the  date  of  death  and  335  weeks  after  the  date  of  accident 
to  the  employe,  or  until  the  intervening  termination  of  dependency,  but  in 
no  case  to  exceed  the  maximum  sum  of  $4,000. 

(3)  If  there  are  partly  dependent  persons,  the  payments  shall  be  such 
part  of  what  would  be  payable  for  total  dependency  as  the  partial  dependency 
existing  at  the  time  of  the  accident  to  the  employe  may  be  proportionate  to 
total  dependency,  all  such  payments  to  be  made  for  the  period  between  the 
date  of  death  and  335  weeks  after  the  date  of  the  accident  to  the  deceased 
employe  or  until  the  intervening  termination  of  dependency,  but  in  no  case  to 
exceed  in  the  aggregate  of  compensation  on  account  of  such  death  the  maxi- 
mum sum  of  $4,000. 

Partial  dependency  shall  be  determined  by  the  proportion  of  the  earnings 
of  the  employe  which  have  been  contributed  to  such  partial  dependent  during 
one  year  next  preceding  the  date  of  injury;  if  the  relation  of  partial  de- 
pendency shall  not  have  existed  for  one  year  next  preceding  the  date  of  injury, 
the  board  shall  consider  all  the  facts  and  circumstances  and  fix  such  pro- 
portion as  may  be  fair  and  reasonable  thereunder. 


*  Appears  "male"  in  certified  copy — obviously  an  error. 


i6 

(4)  All  relations  of  dependency  herein  referred  to  shall  be  construed 
to  mean  dependency  existing  at  the  time  of  accident  to  the  employe. 

§  13.  The  following  persons  shall  be  presumed  to  be  wholly  dependent 
upon  a  deceased  employe:  (a)  A  wife  upon  a  husband  whom  she  has  not 
voluntarily  abandoned  at  the  time  of  the  accident;  (b)  A  husband  incapaci- 
tated from  wage  earning,  upon  a  wife  whom  he  has  not  voluntarily  abandoned 
at  the  time  of  the  accident  to  the  wife;  (c)  A  child  or  children  under  the  age 
of  sixteen  years  or  over  sixten  years  if  incapacitated  from  wage  earning, 
upon  the  parent  with  whom  such  child  or  children  are  living  or  by  whom 
actually  supported  at  the  time  of  the  accident.  In  all  other  cases  the  relation 
of  dependency  in  whole  or  in  part,  shall  be  determined  in  accordance  with  the 
facts  of  each  case  existing  at  the  time  of  the  accident,  but  no  person  shall 
be  considered  a  dependent  in  any  degree  unless  he  be  living  in  the  household 
of  the  employe  at  the  time  of  the  accident  or  unless  such  person  bears  to 
the  employe  the  relation  of  father,  mother,  husband  or  wife,  father-in-law  or 
mother-in-law,  grandfather  or  grandmother,  child  or  grandchild,  or  brother 
or  sister  of  the  whole  or  half  blood. 

Compensation  to  any  dependent  shall  cease  at  the  death  or  legal  or 
common-law  marriage  of  such  dependent  and  upon  the  cessation  of  com- 
pensation to  or  on  account  of  any  person,  the  compensation  of  the  remaining 
persons  entitled  to  compensation  shall,  for  the  unexpired  period  during  which 
their  compensation  is  payable,  be  that  which  such  persons  would  have  received 
during  such  unexpired  period  if  they  had  been  the  only  persons  entitled  to 
compensation  at  the  time  of  the  accident. 

§  14.  As  used  in  this  act,  the  term  "child"  includes  step-children,  legally 
adopted  children,  posthumous  children  and  recognized  illegitimate  children, 
but  does  not  include  married  children  unless  actually  dependent. 

The  terms  "brother"  and  "sister"  include  step-brothers,  step-sisters  and 
brothers  and  sisters  of  the  half  blood  or  by  adoption,  but  excludes  married 
brothers  or  sisters  unless  actually  dependent.  The  term  "grandchild"  in- 
cludes children  of  adopted  children  and  children  of  step-children,  but 
excludes  step-children  of  children  or  of  adopted  children  and  married  children. 
The  term  "parent"  includes  step-parents  and  parents  by  adoption.  The  words 
"adopted"  and  "adoption"  as  herein  used  include  cases  where  the  persons  are 
legally  adopted. 

§  15.  Payment  of  death  benefits,  in  good  faith,  to  a  supposed  dependent 
or  to  a  dependent  subsequent  in  right  to  another  or  other  dependents  shall 
protect  and  discharge  the  employer  and  insurer  unless  and  until  the  lawful 
dependent  or  dependents  prior  in  right  shall  have  given  the  employer  or 
insurer  written  notice  of  his  or  their  claim.  In  case  the  employer  or  insurer 
is  in  doubt  as  to  who  are  dependents  or  as  to  their  respective  rights,  the  board 
shall,  on  application,  decide  and  direct  to  whom  payment  shall  be  made,  and 
payment  made  under  such  direction  shall  release  the  employer  and  insurer 
from  all  liability;  provided,  however,  that  if  an  appeal  be  taken  from  the 
order  of  the  board  directing  payment,  persons  receiving  payment  under  such 
order  shall  be  required  to  furnish  bond  for  the  protection  of  adverse  claimants 
pending  the  outcome  of  the  proceedings. 

In  case  death  occurs  as  a  result  of  the  injury,  after  a  period  of  total  or 


partial  disability,  the  period  of  disability  shall  be  deducted  from  the  total 
period  of  compensation  and  the  benefits  paid  thereunder  from  the  maximum 
allowed  for  the  death  respectively  stated  in  Section  12  hereof. 

§  16.  Where  the  injury  causes  total  disability  for  work,  the  employer, 
during  such  disability,  except  the  first  two  weeks  thereof,  shall  pay  the 
employe  so  injured  a  weekly  compensation  equal  to  65%  of  his  average  weekly 
earnings,  not  to  exceed  $12  nor  less  than  $5  per  week,  such  payments  to  be 
made  during  the  period  of  total  disability  but  not  longer  than  eight  years 
after  the  date  of  the  injury,  nor  in  any  case  to  exceed  the  maximum  sum  of 
$5,000.  In  case  the  period  of  total  disability  begins  after  the  period  of  partial 
disability,  the  period  of  partial  disaibility  shall  be  deducted  from  the  total 
period  of  eight  years  during  which  compensation  for  total  disability  may  be 
payable,  and  the  payments  made  on  account  of  such  partial  disability  shall  be 
deducted  from  the  maximum  of  $5,000. 

In  case  of  the  following  injuries,  the  disability  shall  be  deemed  total  and 
permanent,  to-wit : 

(1)  The  total  and  permanent  loss  of  sight  in  both  eyes. 

(2)  The  loss  of  both  feet  at  or  above  the  ankle. 

(3)  The  loss  of  both  hands  at  or  above  the  wrist. 

(4)  A  similar  loss  of  one  hand  and  one  foot. 

(5)  An  injury  to  the  spine  resulting  in  permanent  and  complete  paralysis 
of  both  arms  or  both  legs  or  of  one  arm  and  one  leg. 

(6)  An  injury  to  the  skull  resulting  in  incurable  insanity  or  imbecility. 

The  above  enumeration  is  not  to  be  taken  as  exclusive,  but  in  all  other 
cases  the  burden  of  proof  shall  be  on  the  claimant  to  prove  that  his  injuries 
have  resulted  in  permanent  total  disability. 

§  17.  In  case  of  an  injury  resulting  in  temporary  partial  disability,  the 
employe  shall  receive  during  such  disability,  except  the  first  two  weeks  thereof, 
a  weekly  compensation  equal  to  65  per  cent  of  the  difference  between  his 
average  weekly  earnings  before  the  injury  and  the  average  weekly  earnings 
which  he  earns  or  is  able  to  earn  in  some  suitable  employment  after  the 
injury  and  during  such  disability,  not  to  exceed  335  weeks  from  the  date  of 
injury  nor  exceeding  the  sum  of  $12  per  week  nor  the  maximum  sum  of  $4000. 
In  case  partial  disability  follows  a  period  of  total  disability  such  period  of 
total  disability  shall  be  deducted  from  the  maximum  period  allowed  for 
partial  disability  and  the  benefits  paid  on  account  thereof  from  the  maximum 
allowed  for  partial  disability. 

§  18.  For  injuries  enumerated  in  the  following  schedule,  the  employe 
shall  receive  in  lieu  of  all  other  compensation,  except  such  as  may  be  payable 
under  Sections  4  and  5  hereof,  a  weekly  compensation  equal  to  65  per  cent. 
of  his  average  weekly  earnings,  but  not  less  than  $5  per  week  nor  exceeding 
$12  per  week,  for  the  respective  periods  stated  thereon,  to-wit: 

For  the  loss  of  a  thumb,  65%  of  the  average  weekly  wages  during  60 
weeks. 

For  the  loss  of  a  first  finger,  commonly  called  the  index  finger,  65%  of 
the  average  weekly  wages  during  45  weeks. 


i8 

For  the  loss  of  a  second  finger,  65%  of  the  average  wages  during  30 
weeks. 

For  the  loss  of  a  third  finger,  65%  of  the  average  weekly  wages  during 
20  weeks. 

For  the  loss  of  a  fourth  finger,  commonly  known  as  the  little  finger,  65% 
of  the  average  weekly  wages  during  15  weeks. 

The  loss  of  the  second,  or  distal  phalange,  of  the  thumb  shall  be  con- 
sidered to  be  equal  to  the  loss  of  one-half  of  such  thumb;  the  loss  of  more 
than  one-half  of  such  thumb  shall  be  considered  to  be  equal  to  the  loss  of  the 
whole  thumb. 

The  loss  of  the  third,  or  distal  phalange,  of  any  finger,  shall  be  considered 
to  be  equal  to  the  loss  of  one-third  of  such  finger. 

The  loss  of  the  middle,  or  second  phalange,  of  any  finger,  shall  be  con- 
sidered to  be  equal  to  the  loss  of  two-thirds  of  such  finger. 

The  loss  of  more  than  the  middle  and  distal  phalanges  of  any  finger  shall 
be  considered  to  be  equal  to  the  loss  of  the  whole  finger,  provided,  however, 
that  in  no  case  will  the  amount  received  for  more  than  one  finger  exceed  the 
amount  provided  in  this  schedule  for  the  loss  of  a  hand. 

For  the  loss  of  a  metacarpel  bone  (bone  of  palm)  for  the  corresponding 
thumb,  finger  or  fingers  above,  add  ten  weeks  to  the  number  of  weeks  as 
above. 

For  ankylosis  (total  stiffness  of)  or  contractures  (due  to  sears  or  in- 
juries) which  makes  the  fingers  more  than  useless,  the  same  number  of  weeks 
apply  to  such  finger  or  fingers  (not  thumb)  as  given  above. 

For  the  loss  of  a  hand  65%  of  the  average  weekly  wages  during  one 
hundred  and  fifty  weeks. 

For  the  loss  of  an  arm,  65%  of  the  average  weekly  wages  during  two 
hundred  weeks. 

For  the  loss  of  one  of  the  toes,  other  than  the  great  toe,  65%  of  the 
average  weekly  wages  during  10  weeks. 

For  the  loss  of  the  great  toe,  65%  of  the  average  weekly  wages  during 
30  weeks. 

The  loss  of  more  than  two-thirds  of  any  toe  shall  be  considered  equal 
to  the  loss  of  the  whole  toe. 

The  loss  of  less  than  two-thirds  of  any  toe  shall  be  considered  to  be  equal 
to  the  loss  of  one-half  toe.  For  the  loss  of  a  foot,  65%  of  the  average  weekly 
wages  during  125  weeks. 

For  the  loss  of  a  leg,  65%  of  the  average  weekly  wages  during  200  weeks, 
or  the  total  and  permanent  loss  of  the  sight  of  an  eye,  65%  of  the  average 
weekly  wages  during  one  hundred  weeks. 

In  all  other  cases  of  permanent  partial  disability,  including  any  disfigure- 
ment which  will  impair  the  future  usefulness  or  occupational  opportunities 
of  the  injured  employe,  compensation  shall  be  determined  according  to  the 
percentage  of  disability,  taking  into  account,  among  other  things,  any  pre- 
vious disability,  the  nature  of  the  physical  injury  or  disfigurement,  the  occu- 
pation of  the  injured  employe  and  age  at  the  time  of  injury;  the  compensa- 
tion paid  therefor  shall  be  65%  of  the  average  weekly  earnings  of  the  employe, 
but  not  less  than  $5  nor  more  than  $12,  multiplied  by  the  percentage  of  dis- 


19 

ability  caused  by  the  injury,  for  such  period  as  the  board  may  determine,  not 
exceeding  335  weeks  nor  a  maximum  sum  of  $4,000.  Whenever  the  weekly 
payments  under  this  paragraph  would  be  less  than  $3  per  week,  the  period 
may  be  shortened  and  the  payments  correspondingly  increased  to  that  amount. 
Where  compensation,  except  as  provided  in  Sections  four  and  five  of  this 
act,  is  paid  under  any  other  provision  of  this  act  the  period  during  which 
such  other  compensation  is  paid  and  the  amount  thereof  shall  be  deducted 
respectively  from  the  maximum  period  and  maximum  amount  which  may  be 
paid  under  this  paragraph. 

§  19.  If  an  injured  employe  refuses  employment  reasonably  suited  to  his 
capacity  and  physical  condition  procured  for  him,  he  shall  not  be  entitled  to 
compensation  during  the  period  of  such  refusal  unless,  in  the  opinion  of  the 
board,  such  refusal  was  justifiable. 

§20.  If  a  previously  injured  employe  sustains  a  subsequent  injury  which 
results  in  a  condition  to  which  both  injuries,  or  their  effects,  contribute  the 
employer  in  whose  employment  the  subsequent  injury  is  sustained  shall  be 
liable  only  for  the  compensation  to  which  such  resulting  condition  entitled  the 
employe,  less  all  compensation  which  the  provisions  of  this  law  would  have 
afforded  an  account  of  the  prior  injury  or  injuries  had  they  been  compensated 
for  thereunder. 

§21.  Upon  its  own  motion  or  upon  the  application  of  any  party  inter- 
ested and  a  showing  of  change  of  conditions,  mistake  or  fraud,  the  board 
may  at  any  time  review  any  award  or  order,  ending,  diminishing  or  increasing 
the  compensation  previously  awarded,  within  the  maximum  and  minimum 
provided  in  this  act,  or  change  or  revoke  its  previous  order  sending  imme- 
diately to  the  parties  a  copy  of  its  subsequent  order  or  award.  Review 
under  this  section  shall  be  had  upon  notice  to  the  parties  interested  and  shall 
not  affect  the  previous  order  or  award  as  to  any  sums  already  paid  there- 
under. 

§  22.  Compensation  under  this  act  to  alien  dependent  widows  and 
children,  not  residents  of  the  United  States,  shall  be  one-half  of  the  amount 
provided  in  each  case  for  residents;  and  the  employer  may  at  any  time, 
commute  all  future  installments  of  compensation  to  alien  dependents  the  then 
value  thereof.  Alien  widowers,  parents,  brothers  and  sisters,  not  residents  of 
the  United  States,  shall  not  be  entitled  to  any  compensation. 

§23.  Any  notice  required  to  be  given  under  this  act  shall  be  deemed 
to  have  been  properly  given  and  served  when  deposited  in  the  mail  in  a  regis- 
tered letter  or  package  properly  stamped  and  addressed  to  the  person  to 
whom  notice  is  to  be  given  at  his  last  known  address  and  in  time  to  reach  him 
in  due  time  to  act  thereon.  Notice  may  also  be  given  and  served  in  like 
manner  as  are  notices  in  civil  actions. 

Any  notice,  given  and  served  as  provided  in  this  section,  to  the  consular 
representative  of  the  nation  of  which  any  non-resident  dependent  of  a  de- 
ceased employe  is  a  citizen  or  subject  or  to  the  authorized  agent  or  representa- 
tive of  any  such  official  residing  in  this  State,  shall  be  deemed  to  have  been 
properly  given  and  served  upon  such  dependent. 

§  24.     Compensation  shall  be  computed  at  the  average  weekly  wage  earned 


20 

by  employe  at  time  of  injury  reckoning  wages  as  earned,  while  working 
at  full  time. 

(a)  If  the  employe,  at  the  time  of  the  injury,  is  regularly  employed  in 
a  higher  grade  of  work  or  occupation  than  formerly  during  the  year  and 
with  larger  regular  wages,  only  such  higher  grade  of  work  or  occupation,  if 
the  same  be  not  seasonal,  shall  be  taken  into  consideration  in  computing  his 
average  weekly  wages. 

§25.  Any  payments  made,  or  the  value  of  supplies  furnished  by  the 
employer  or  his  insurer  during  the  period  of  disability,  to  the  employe  or  his 
dependents,  which  by  the  terms  of  this  act  were  not  due  or  payable  when  made 
or  furnished,  may,  with  the  approval  of  the  board,  be  deducted  from  the 
amount  payable  as  compensation. 

The  board  may,  on  the  application  of  either  party,  in  its  discretion  and 
having  regard  both  to  the  welfare  of  the  employe  and  the  convenience  and 
financial  ability  of  the  employer,  authorize  compensation  to  be  paid  monthly 
or  quarterly. 

§  26.  Whenever  compensation  has  been  paid  for  not  less  than  six  months 
thereafter,  on  the  application  of  either  party  and  upon  notice  to  the  other 
party,  in  any  case  where  the  board  may  determine  that  it  will  be  for  the  best 
interests  of  either  party  and  will  not  subject  the  employer  or  his  insurer  to  an 
undue  risk  of  overpayment,  future  payments  of  compensation  or  any  part 
thereof  may  be  commuted  to  a  lump  sum  of  an  amount  which  will  equal  the 
total  sum  of  the  probable  future  payments  so  commuted,  discounted  at  5% 
per  annum  on  each  payment.  Upon  payment  of  such  lump  sum  all  liability 
for  the  payments  therein  commuted  shall  cease. 

§  27.  Whenever  for  any  reason  the  board  may  deem  it  expedient,  any 
lump  sum  which  is  paid  as  provided  in  Section  twenty-six  hereof  shall  be 
paid  to  any  suitable  person  or  corporation  appointed  by  the  judge  of  the 
county  court  of  the  county  of  the  residence  of  the  injured  employe,  or  of  his 
dependents,  as  trustee  to  administer  or  apply  the  same  for  the  benefit  of  the 
person  or  persons  entitled  thereto.  The  receipt  of  such  trustee  for  the  amount 
so  paid  to  him  or  it  shall  discharge' the  employer  and  his  insurer.  Except  as 
otherwise  herein  specifically  provided,  the  manner  of  qualification  and  the 
rights,  duties  and  liabilities  of  such  trustee  shall  be  determined  by  the  gen- 
eral laws  of  this  State. 

§  28.  The  benefits  in  case  of  death  shall  be  paid  to  such  one  or  more 
dependents  of  the  deceased  employe,  for  the  benefit  of  all  the  dependents 
entitled  thereto,  as  may  be  determined  by  the  board.  The  dependents  to 
whom  payments  are  made  shall  apply  the  same  to  the  use  of  the  several 
persons  thereto  entitled  under  this  act,  according  to  their  respective  claims  on 
the  deceased  for  support.  The  compensation  of  an  insane  person  shall  be 
paid  to  his  or  her  committee. 

In  cases  where  the  dependents  are  a  widow,  or  other  head  of  a  family 
of  minor  children,  and  one  or  more  minor  children,  it  shall  be  sufficient  for 
the  widow  or  head  of  such  family  to  make  application  for  compensation  on 
behalf  of  all,  and  in  cases  where  the  dependents  are  mentally  incapacitated  or 
are  minors  the  head  of  whose  family  is  not  a  dependent,  the  application  may 
be  made  by  the  committee,  guardian  or  next  friend  of  such  dependents. 


21 

§  29.  Where  an  accident  is  caused  in  any  degree  by  the  intentional  failure 
of  the  employer  to  comply  with  any  specific  statute  or  lawful  regulation  made 
thereunder,  communicated  to  such  employer  and  relative  to  installation  or 
maintenance  of  safety  appliances  or  methods,  the  compensation  for  which  the 
employer  would  otherwise  have  been  liable  under  this  act  shall  be  increased 
15%  in  the  amount  of  each  payment;  where  the  accident  is  caused  in  any 
degree  by  the  intentional  failure  of  the  employe  to  use  any  safety  appliance 
furnished  by  the  employer,  or  to  obey  any  lawful  and  reasonable  rule,  order 
or  regulation  of  the  board  or  the  employer  for  the  safety  of  employees  or  the 
public,  the  compensation  for  which  the  employer  would  otherwise  have  been 
liable  under  this  act,  shall  be  decreased  15%  in  the  amount  of  each  payment; 
provided,  however,  that  nothing  in  this  section  shall  be  construed  to  conflict 
with  or  impair  any  of  the  provisions  of  Section  three  of  this  act. 

§  30.  f  In  case  any  minor  employe  who  is  injured  or  killed  is,  at  the  time 
of  such  injury,  employed  in  wilful  and  known  violation  by  the  employer  of 
any  law  of  this  State  regulating  the  employment  of  minors,  his  statutory 
guardian,  or  personal  representative  of  the  minor  so  killed,  may  claim  com- 
pensation under  the  terms  of  this  act  or  may  sue  to  recover  damages  as  if  this 
act  had  not  been  passed.  If  a  claim  to  compensation  be  made  under  this 
section,  the  making  of  such  claim  shall  be  a  waiver  and  bar  to  all  rights  of 
action  on  account  of  said  injury  or  death  of  said  minor  as  to  all  persons,  and 
the  institution  of  an  action  to  recover  damages  on  account  of  such  injury  or 
death  shall  be  a  waiver  and  bar  of  all  rights  to  compensation  under  this  act. 

§31.  All  rights  of  compensation  granted  by  this  act  shall  have  the  same 
preference  or  priority  for  the  whole  thereof  against  the  assets  of  the  em- 
ployer as  is  allowed  by  law  for  any  unpaid  wages  for  labor. 

§  32.  No  claim  for  compensation  under  this  act  shall  be  assignable,  and 
all  compensation  and  claims  therefor  shall  be  exempt  from  all  claims  of 
creditors. 

PROCEDURE  TO  OBTAIN   COMPENSATION. 

§  33-  No  proceeding  under  this  act  for  compensation  for  an  injury  or 
death  shall  be  maintained  unless  a  notice  of  the  accident  shall  have  been  given 
to  the  employer  as  soon  as  practicable  after  the  happening  thereof,  and  unless 
a  claim  for  compensation  with  respect  to  such  injury  shall  have  been  made 
within  one  year  after  the  date  of  the  accident,  or,  in  case  of  death,  within  one 
year  after  such  death,  whether  or  not  a  claim  has  been  made  by  the  employe 
himself  for  compensation.  Such  notice  and  such  claim  may  be  given  or  made 
by  any  person  claiming  to  be  entitled  to  compensation  or  by  some  one  in  his 
behalf.  If  payments  of  compensation,  as  such,  have  been  made  voluntarily, 
the  making  of  a  claim  within  such  period  shall  not  be  required,  but  shall 
become  requisite  following  the  suspension  of  such  voluntary  payments. 

§34.  Such  notice  and  such  claim  shall  be  in  writing,  and  the  notice  shall 
contain  the  name  and  address  of  the  employe,  and  shall  state  in  ordinary 
language  the  time,  place  of  occurrence,  nature  and  cause  of  the  accident,  with 
names  of  witnesses,  the  nature  and  extent  of  the  injury  sustained,  and  the 
work  or  employment  in  which  the  employe  was  at  the  time  engaged,  and 
shall  be  assigned  by  him  or  a  person  on  his  behalf,  or,  in  the  event  of  his 


22 

death,  by  any  one  or  more  of  his  dependents  or  a  person  on  their  behalf.  The 
notice  may  include  the  claim. 

§  35.  Any  such  notice  or  claim  shall  be  given  to  the  employer,  or  if  the 
employer  be  a  partnership,  then  to  any  one  of  the  partners.  If  the  employer 
be  a  corporation,  then  the  notice  may  be  given  to  any  agent  of  the  corpora- 
tion upon  whom  process  may  be  served,  or  to  any  officer  of  the  corporation, 
or  agent  of  the  corporation  in  charge  of  the  business  at  the  place  where  the 
injury  occurred.  Such  notice  or  claim  may  be  given  by  delivery  to  any  of  such 
persons  or  in  the  manner  provided  in  Section  twenty-three  hereof. 

§  36.  Such  notice  shall  not  be  held  invalid  or  insufficient  by  reason  of 
any  inaccuracy  in  complying  with  Section  thirty-four  hereof,  unless  it  be 
shown  that  the  employer  was  in  fact  misled  to  his  injury  thereby.  Want  of 
notice  or  delay  in  giving  notice  shall  not  be  a  bar  to  proceedings  under  this 
act  if  it  be  shown  that  the  employer,  his  agent  or  representative,  had  knowl- 
edge of  the  injury,  or  that  such  delay  or  failure  to  give  notice  was  occasioned 
by  mistake  or  other  reasonable  cause. 

§  37.  After  an  injury  and  so  long  as  compensation  is  claimed,  the  work- 
man, if  so  requested  by  his  employer  or  the  board,  shall  submit  himself  to 
examination,  at  reasonable  time  and  places,  to  a  duly  qualified  physician  or 
surgeon  designated  and  paid  by  the  employer.  The  employe  shall  have  the 
right  to  have  a  duly  qualified  physician  or  surgeon  designated  and  paid  by 
himself  present  at  such  examination,  which  right,  however,  shall  not  be 
construed  to  deny  to  the  employer's  physician  or  surgeon  the  right  to  visit  the 
injured  employe  at  all  reasonable  times  and  under  all  reasonable  conditions. 
If  an  employe  refuses  to  submit  himself  to  or  in  any  way  obstruct  such 
examination  his  right  to  take  or  prosecute  any  proceedings  under  this  act 
shall  be  suspended  until  such  refusal  or  obstruction  ceases  and  no  compensa- 
tion shall  be  payable  for  the  period  during  which  said  refusal  or  obstruction 
continues. 

§38.  No  limitation  of  time  provided  in  this  act  shall  run  against  any 
person  who  is  mentally  incompetent  or  who  is  a  minor  dependent,  so  long  as 
he  has  no  committee,  guardian  or  next  friend. 

ADMINISTRATION. 

§  39.  A  board  is  hereby  created,  to  be  known  as  the  "Workmen's  Com- 
pensation Board,"  which  shall  consist  of  three  members  appointed  by  the 
Governor.  Each  member  of  the  board  shall  hold  office  for  four  years  and 
until  his  successor  shall  have  been  appointed  and  qualified,  except  that  when 
the  board  is  first  created,  one  member  shall  be  appointed  for  two  years,  one 
for  three  years  and  one  for  four  years.  Thereafter,  upon  the  expiration  of 
the  term  of  any  member,  his  successor  shall  be  appointed  for  a  full  term  of 
four  years.  Of  the  board  as  first  constituted,  the  member  appointed  for  two 
years  shall  be  chairman  during  his  term,  the  member  appointed  for  three  years 
during  the  third  year  and  the  member  appointed  for  four  years  during  the 
fourth  year.  Thereafter,  the  senior  member  in  length  of  service  on  the  board 
in  his  current  term  in  any  given  year  shall  be  chairman  during  that  year. 

Vacancies  on  the  board  shall  be  filled  by  appointment  for  the  remainder 


23 

of  the  unexpired  term,  but  no  vacancy  shall  impair  the  rights  of  the  remain- 
ing members  to  exercise  all  the  powers  of  the  board,  nor  shall  relieve  such 
members  frorn^discharging  all  the  duties  of  the  board  during  such  vacancy. 
In  the  event  of  a  vacancy,  the  appointee  for  the  unexpired  term  shall  not 
succeed  his  predecessor  in  the  chairmanship  of  the  board;  such  other  member 
as  would,  but  for  the  vacancy,  have  been  chairman  shall  at  once  succeed  to 
the  unexpired  chairmanship,  when  a  vacancy  occurs  therein,  in  addition  to  the 
year's  chairmanship  to  which  he  would  otherwise  have  been  entitled. 

§  40.  No  person  shall  be  eligible  to  appointment  as  a  member  of  the 
board  unless  he  shall  be  at  least  thirty  years  of  age,  a  resident  of  Kentucky 
not  less  than  three  years  consecutively  next  preceding  his  appointment,  and 
of  good  moral  character. 

No  person  accepting  appointment  as  a  member  of  the  board  and  qualify- 
ing as  such  shall  be  eligible  to  election  or  appointment  to  any  public  office 
during  any  calendar  year  which  shall  include  any  part  of  the  term  of  mem- 
bership on  the  board  for  which  he  may  have  been  appointed  and  qualified 
and  in  which  such  election  shall  -be  held  or  appointment  made.  Resignation 
from  membership  on  the  board  shall  not  relieve  such  member  from  any  of 
the  provisions  of  this  section  and  the  acceptance  of  appointment  and  quali- 
fication as  a  member  of  the  board  shall  constitute  a  valid  waiver  of  any  and 
all  statutory  or  constitutional  rights  to  or  eligibility  for  holding  any  other 
public  office  during  such  time. 

§41.  The  Governor  may,  at  any  time,  remove  any  member  of  the  board 
for  inefficiency,  neglect  of  duty,  misconduct  in  office  or  political  activity,  or  if 
he  become  ineligible  as  defined  in  Section  40,  giving  him  in  advance  a  copy 
of  the  charges  preferred  and  an  opportunity  of  being  publicly  heard,  in  person 
or  by  counsel,  upon  not  less  than  ten  days'  notice.  A  representative  of  the 
Attorney  General's  office  shall  attend  such  proceedings,  and,  upon  the  Gov- 
ernor's request,  shall  advise  or  assist  him  therein.  Either  party  may  procure 
the  attendance  of  witnesses  and  their  testimony  as  is  now  provided  by  the 
Civil  Code  in  ordinary  actions. 

If  such  member  be  removed,  the  Governor  shall  file  in  the  office  of  the 
Secretary  of  State  a  complete  statement  of  all  charges  made  against  such 
member  and  his  findings  thereon,  together  with  a  complete  record  of  the 
proceedings  had  and  transcript  of  testimony  heard,  the  same  to  constitute  a 
public  record  of  the  Commonwealth.  Any  member  of  the  board  may  also 
be  removed  by  the  Senate,  by  impeachment  under  the  same  procedure  as  is 
now  provided  by  law. 

§42.  The  salary  and  expenses  of  the  board  with  their  assistants  and 
employes  shall  be  paid  out  of  the  maintenance  fund  provided  for  in  Section 
85  hereof;  the  annual  salary  of  each  member  shall  be  three  thousand  five 
hundred  dollars.  The  board  may  appoint  a  secretary  at  a  salary  of  not  more 
than  twenty-five  hundred  dollars  a  year  and  a  medical  director  and  such 
other  assistants  and  employes  as  are  necessary  to  the  proper  administration  of 
this  act,  at  salaries  to  be  fixed  by  the  board  and  approved  by  the  Governor; 
provided,  however,  that  such  salaries  shall  in  no  case  exceed  $75  per  month 
to  any  stenographer,  $100  per  month  to  any  clerical  employe,  $150  per  month  to 
any  other  employe  or  assistant,  or  $3,000  per  year  to  the  medical  director,  who 


24 

snail  be  a  reputable  licensed  and  practicing  physician  and  surgeon  of  the  pro- 
fessional education,  training  or  qualification  required  by  law  for  admission  to 
practice  in  this  state.  The  board  may  at  any  time  remove  any  of  its  ap- 
pointees upon  filing  with  the  Secretary  of  State  a  full  written  statement  of  its 
reasons  for  such  removal. 

§423.  Members  of  the  "Workmen's  Compensation  Board"  shall  be  con- 
sidered as  officers,  and  shall  take  the  oath  prescribed  by  the  Constitution  and 
laws  of  Kentucky,  and  shall  give  bond  in  the  sum  of  $10,000  of  a  surety  com- 
pany authorized  to  do  business  in  the  State,  for  the  faithful  performance  of 
their  duties,  which  bonds  shall  be  approved  by  the  Governor  and  kept  on  file 
in  the  office  of  the  Secretary  of  State,  and  any  action  on  said  bonds  for 
breach  thereof,  shall  be  instituted  by  special  counsel  employed  by  the  Gov- 
ernor and  shall  be  in  the  name  of  the  Commonwealth.  The  premium  upon 
said  bonds  shall  be  paid  out  of  the  maintenance  fund. 

§  42b,  The  board  and  their  employes  or  authorized  representatives  shall, 
for  such  traveling  as  is  necessitated  by  the  discharge  of  their  official  duties, 
be  allowed  transportation  actually  paid  for,  not  exceeding  the  regular  fare 
over  the  most  direct  route,  and  meals  and  lodging  actually  paid  ior,  not 
exceeding  three  dollars  per  day, 

§  43.  The  board  shall  keep  and  maintain  its  main  offices  in  Frankfort, 
Kentucky,  using  suitable  rooms  and  offices  belonging  to  the  State,  and  shall 
be  provided  necessary  office  furniture  to  be  paid  for  out  of  the  State  treasury. 
The  board  shall  provide  necessary  supplies,  books,  periodicals  and  maps  and 
shall  provide  itself  with  a  seal  for  the  authentication  of  its  orders,  awards  or 
proceedings,  on  which  shall  be  inserted  the  words  ''Workmen's  Compensation 
Board,  State  of  Kentucky,  Official  Seal."  The  board  may  hold  sessions  at  any 
place  within  the  State  where  necessary  and  shall  have  power  to  sue  or  in- 
stitute legal  proceedings  in  any  court  of  the  Commonwealth,  under  existing 
laws  as  to  jurisdiction  of  actions;  unless  consented  to  by  the  board,  all  actions 
or  proceedings  against  it  or  a  member  thereof  in  his  official  capacity  as  such, 
shall  be  brought  in  the  courts  of  the  county  of  Franklin. 

§44.  The  board  shall  fix  and  adopt  at  least  one  day  of  the  week  on 
which  regular  meetings  shall  be  held  bi-weekly  for  the  transaction  of  all 
business,  a  quorum  of  the  board  to  be  present  at  its  main  offices  not  later 
than  11:00  A.  M.,  and  remaining  at  the  office,  or  available  thereto,  until  5:00 
P.  M.  of  such  day.  When  necessary,  the  chairman  shall  call  the  board 
together  at  any  time  during  business  hours  on  any  other  day  to  consider  and 
transact  any  business  which  may  be  before  it.  All  proceedings  of  the  board 
shall  be  recorded  in  a  book  for  that  purpose  by  the  secretary,  which  shall 
constitute  a  public  record  and  shall  contain  an  entry  of  each  case,  claim  or 
proceeding  considered,  heard  or  passed  upon  by  the  board  or  a  member 
thereof,  with  the  award,  finding  or  decision  made  thereon. 

§  45.  For  the  purposes  of  this  act,  the  State  of  Kentucky  is  hereby  divided 
into  three  districts,  to  be  known  respectively  as  the  Eastern,  Central  and 
WTestern  Districts.  The  Eastern  District  shall  contain  the  counties  of  Carroll. 
Gallatin,  Boone,  Kenton,  Campbell,  Owen,  Grant,  Pendleton,  Bracken,  Scott, 
Harrison,  Robertson,  Mason,  Woodford,  Jessamine,  Fayette,  Bourbon, 
Nicholas,  Fleming,  Lewis,  Greenup,  Boyd,  Carter,  Elliott,  Rowan,  Bath,  Mont- 


25 

gomery,  Clark,  Madison,  Estill,  Powell,  Menifee,  Morgan,  Lawrence,  Johnson, 
Martin,  Pike,  Floyd,  Knott,  Letcher,  Perry,  Magoffin,  Wolfe,  Lee,  Breathitt, 
Owsley.  The  Central  District,  the  counties  of  Trimble,  Henry,  Oldham, 
Jefferson,  Shelby,  Franklin,  Bullitt,  Spencer,  Anderson,  Nelson,  Washington, 
Mercer,  Marion,  Boyle,  Garrard,  Lincoln,  Rockcastle,  Green,  Taylor,  Adair, 
Casey,  Russell,  Pulaski,  Cumberland,  Clinton,  Wayne,  McCreary,  Whitley, 
Laurel,  Jackson,  Clay,  Leslie,  Knox,  Bell,  Harlan.  The  Western  District, 
the  counties  of  Fulton,  Hickman,  Graves,  Carlisle,  Ballard,  McCracken,  Cal- 
loway,  Marshall,  Livingson,  Crittenden,  Lyon,  Caldwell,  Trigg,  Christian, 
Hopkins,  Webster,  Union,  Henderson,  Daviess,  McLean,  Muhlenberg,  Todd, 
Logan,  Butler,  Ohio,  Hancock,  Breckinridge,  Meade,  Hardin,  Grayson,  Larue, 
Edmonson,  Hart,  Warren,  Barren,  Metcalfe,  Monroe,  Allen.  One  member 
of  the  board,  as  first  constituted,  shall  be  appointed  for  each  district,  the  suc- 
cessors of  each  to  thereafter  be  appointed  from  such  district.  During  his 
term  of  office,  each  member  shall  maintain  his  residence  at  some  point  in  his 
district  and  shall  adopt  and  maintain  office  hours  for  at  least  one  day  of  the 
week  at  some  point  in  his  district,  during  usual  business  hours;  the  place, 
day  and  time  of  maintaining  such  office  hours  and  the  place  of  residence  of 
the  member  shall  be  shown  upon  the  official  stationery  used  by  him  in  his 
district. 

§46.  A  majority  of  the  board  shall  constitute  a  quorum  for  the  trans- 
action of  business,  and  vacancies  shall  not  impair  the  right  of  the  remaining 
members  to  exercise  all  the  powers  of  the  full  board,  so  long  as  a  majority 
remains.  Any  investigation,  inquiry  or  hearing  which  the  board  is  authorized 
to  hold  or  undertake  may  be  held  or  undertaken  by  or  before  any  one  member 
of  the  board,  or  a  referee  acting  for  him,  under  authorization  of  the  board. 
All  investigations,  inquiries,  hearings  and  decisions  of  the  board,  and  every 
order  made  by  a  member  thereof,  when  approved  by  a  majority  of  the  mem- 
bers, and  so  shown  on  a  record  of  its  proceedings,  shall  be  deemed  to  be  the 
order  of  the  board. 

§  47.  The  board  may  make  rules  not  inconsistent  with  this  act  for 
carrying  out  the  provisions  of  this  act.  Processes  and  procedure  under  this 
act  shall  be  as  summary  and  simple  as  reasonably  may  be.  The  board  or  any 
member  thereof  shall  have  the  power  for  the  purpose  of  this  act  to  subpoena 
witnesses,  administer  or  cause  to  have  administered  oaths,  and  to  examine  or 
cause  to  have  examined  such  parts  of  the  books  and  records  of  the  parties 
to  a  proceeding  as  relate  to  question  in  dispute. 

The  county  sheriff  shall  serve  all  subpoenas  of  the  board  and  shall  receive 
the  same  fees  as  now  provided  by  law  for  like  service  in  civil  actions;  each 
witness  who  appears  in  obedience  to  such  subpoena  of  the  board  shall  receive 
for  attendance  the  fees  and  mileage  for  witnesses  in  civil  cases  in  the  courts. 

The  circuit  court  shall,  on  application  of  the  board,  or  any  member 
thereof,  enforce  by  proper  proceedings,  the  attendance  and  testimony  of  wit- 
nesses and  the  production  and  examination  of  books,  papers  and  records. 

§48.  If  the  employe  and  employer  reach  an  agreement,  conforming  to 
the  provisions  of  this  act,  in  regard  to  compensation,  a  memorandum  of  the 
agreement  shall  be  filed  with  the  board,  and,  if  approved  by  it,  shall  be  en- 
forceable in  like  manner  as  is  herein  provided  for  the  enforcement  of  awards 


26 

of  the  board.  Nothing  herein  shall  prevent  the  voluntary  payment  of  com- 
pensation in  the  amounts  and  for  the  periods  herein  prescribed,  without 
formal  agreement,  but  nothing  shall  operate  as  a  final  settlement  except  a 
memorandum  of  agreement  filed  with  and  approved  by  the  board  in  accord- 
ance with  this  section,  or  the  expiration  of  the  time  limit  hereinbefore  pre- 
scribed in  Section  33. 

§  49.  If  the  parties  fail  to  reach  an  agreement  in  regard  to  compensation 
under  this  act,  or  if  they  have  previously  filed  such  an  agreement  with  the 
board  and  compensation  has  been  paid  or  is  due  in  accordance  therewith  and 
the  parties  thereafter  disagree,  either  party  may  make  written  application  to 
the  board  for  a  hearing  in  regard  to  the  matter  at  issue  and  for  a  ruling 
thereon.  Such  application  for  a  hearing  must  be  filed  as  soon  as  is  practicable 
after  disagreement,  or  after  the  cessation  of  voluntary  payments,  if  any  have 
been  made. 

As  soon  as  possible  after  such  application  has  been  received  the  board 
shall  set  the  date  for  a  hearing,  to  be  held  as  soon  as  is  practicable  in  view 
of  the  matter  involved,  and  shall  notify  the  parties  at  issue  of  the  time  and 
place  of  such  hearing. 

Unless  otherwise  agreed  to  by  the  parties  and  authorized  by  the  board, 
the  hearing  shall  be  held  at  or  convenient  to  the  place  where  the  injury  was 
sustained  or  the  ground  for  disagreement  occurred.  In  advance  of  directing 
a  hearing,  the  board,  or  a  member  thereof,  or  referee  authorized  by  the  board, 
may  confer  informally  with  the  parties  at  issue  in  an  attempt  to  assist  in 
adjusting  their  differences,  but  may  not  delay  the  granting  of  a  hearing,  over 
the  objection  of  either  party,  for  such  purpose. 

§  50.  The  board,  or  any  of  its  members,  shall  hear  the  parties  at  issue 
and  their  representatives  and  witnesses  and  shall  determine  the  dispute  in  a 
summary  manner.  The  award,  together  with  a  statement  of  the  findings  of 
fact,  rulings  of  law  and  any  other  matters  pertinent  to  the  question  at  issue, 
shall  be  filed  with  the  record  of  proceedings,  and  a  copy  of  the  award  shall 
immediately  be  sent  to  the  parties  in  dispute. 

§  51.  If  an  application  for  review  is  made  to  the  board  within  seven  days 
from  the  date  of  the  award,  the  full  board,  if  the  first  hearing  was  not  held 
before  the  full  board,  shall  review  the  evidence,  or  if  deemed  advisable,  as 
soon  as  practicable,  hear  the  parties  at  issue,  their  representatives  and  wit- 
nesses and  shall  make  and  award  and  file  the  same  in  like  manner  as  specified 
in  the  foregoing  section. 

If  a  party  introduce  at  a  hearing  before  the  full  board  a  witness  whose 
testimony  at  the  original  hearing  appears  in  the  transcript  of  evidence  taken 
thereat,  the  costs  accruing  through  the  attendance  of  such  witness  and  the 
transcribing  of  his  testimony  at  the  second  hearing  shall  be  borne  by  the  party 
introducing  him,  at  such  hearing,  regardless  of  the  outcome  of  the  controversy. 

§  52.  An  award,  or  order  of  the  board,  as  provided  in  Section  50,  if 
application  for  review  be  not  filed  as  therein  provided,  or  an  award  or  order 
of  the  board  upon  review  as  provided  in  Section  51,  shall  be  conclusive,  and 
binding  as  to  all  questions  of  fact,  but  either  party  may,  within  twenty  days 
after  the  rendition  of  such  final  order  or  award  of  the  board  may  by  petition 
appeal  to  the  circuit  court  that  would  have  jurisdiction  to  try  an  action  for 


damages  for  said  injuries  if  this  Act  had  not  passed,  for  the  review  of  such 
order  or  award,  the  board  and  the  adverse  party  being  made  respondents. 
Such  petition  shall  state  fully  the  grounds  upon  which  a  review  is  sought, 
assign  all  errors  relied  on  and  shall  be  verified  by  the  petitioner,  who  shall 
furnish  copies  of  the  petition  to  the  respondents  at  the  time  of  filing  same. 

Summons  shall  issue  upon  the  petition,  directing  the  adverse  party  to  file 
answer  within  fifteen  days  after  service  thereof  and  directing  the  board  to 
certify  its  complete  record  of  the  case  to  the  court,  or,  in  lieu  thereof,  and 
if  consented  to  by  the  petitioner  and  adverse  party,  an  abstract  of  the  record 
prepared  in  the  same  manner  as  hereinafter  provided  for  appeals  to  the  Court 
of  Appeals. 

No  new  or  additional  evidence  may  be  introduced  in  the  circuit  court, 
except  as  to  the  fraud  or  misconduct  of  some  person  engaged  in  the  adminis- 
tration of  this  Act,  and  affecting  the  order,  ruling  or  award,  but  the  court 
shall  otherwise  hear  the  cause  upon  the  record  or  abstract  thereof  as  certified 
by  the  board,  and  shall  dispose  of  the  cause  in  summary  manner,  its  review 
being  limited  to  determining  whether  or  not : 

1.  The  board  acted  without  or  in  excess  of  its  powers. 

2.  The  order,  decision  or  award  was  procured  by  fraud. 

3.  The  order,  decision  or  award  is  not  in  conformity  to  the  provisions 
of  this  Act 

4.  If  findings  of  fact  are  in  issue,  whether  such  findings  of  fact  support 
the  order,  decision  or  award. 

The  board  and  each  party  shall  have  the  right  to  appear  in  such  review 
proceedings;  the  court  shall  enter  judgment  affirming,  modifying  or  setting 
aside  the  order,  decision  or  award,  or  in  its  discretion  remanding  the  cause 
to  the  board  for  further  proceedings  in  conformity  with  the  direction  of  the 
court.  The  court  may,  in  advance  of  judgment  and  upon  a  sufficient  showing 
of  fact,  remand  the  cause  to  the  board. 

§  53-  Where  an  amount  sufficient  under  existing  laws  to  authorize  an 
appeal  to  the  Court  of  Appeals  is  involved,  the  judgment  of  the  circuit  court 
shall  be  subject  to  appeal  to  the  Court  of  Appeals,  the  scope  of  whose  review 
shall  include  all  matters  herein  made  the  subject  of  review  by  the  circuit 
court  and  also  errors  of  law  arising  in  the  circuit  court  and  upon  appeal  made 
reviewable  by  the  Civil  Code  of  procedure  where  not  in  conflict  with  the 
provisions  of  this  Act.  The  procedure  as  to  appeal  to  the  Court  of  Appeals 
shall  be  the  same  as  in  civil  actions,  so  far  as  the  same  may  be  applicable  to 
and  not  in  conflict  with  the  provisions  of  this  act,  except  as  follows: 

1.  Only  so  much  of  the  evidence  shall  be  embraced  in  a  bill  of  exceptions 
as  may  be  necessary  to  present  clearly  the  questions  of  law  involved  in  the 
rulings  to  which  exceptions  are  reserved,  and  such  evidence  as  is  embraced 
therein  shall  be  set  forth  in  condensed  and  narrative  form,  save  as  a  proper 
understanding  of  the  questions  presented  may  require  that  parts  of  it  be  set 
forth  otherwise. 

2.  In  order  to  carry  out  the  provisions  of  sub-section  i  and  further  to 
reduce  the  size  of  the  record  on  appeal,  it  shall  be  the  duty  of  the  appellant  to 
file  with  the  clerk  of  the  circuit  court,  together  with  proof  or  acknowledg- 
ment of  service  of  a  copy  on  the  appellee  or  his  counsel,  a  schedule  which  shall 


28 

indicate  the  portions  of  the  record  to  be  incorporated  into  the  transcript  of  the 
record  on  such  appeal.  Should  the  appellee  or  his  counsel  desire  additional 
portions  of  the  record  incorporated  into  the  record  to  be  filed  in  the  Court 
of  Appeals,  he  may  file  with  the  clerk  of  the  circuit  court  his  schedule  also, 
within  ten  days  thereafter  (unless  the  term  be  extended  by  order  of  the 
circuit  court  or  of  the  Court  of  Appeals),  indicating  such  additional  portions 
of  the  record  desired  by  him. 

The  clerk  of  the  circuit  shall  transmit  to  the  Court  of  Appeals  as  the 
transcript  of  the  record  only  those  portions  of  the  record  in  the  lower  court 
which  are  designated  by  the  parties  as  above  provided.  The  parties,  or  their 
counsel,  may,  however,  agree  by  written  stipulation  to  be  filed  with  the  clerk 
of  the  circuit  court,  the  portions  of  the  record  which  shall  constitute  the 
transcript  of  record  on  appeal,  and  the  clerk  in  such  case  shall  transmit  only 
the  papers  designated  in  such  stipulation. 

§  54.  If  the  Court  of  Appeals  shall  find  that  portions  of  the  record  un- 
necessary to  a  proper  presentation  of  the  case  have  been  incorporated  into  the 
transcript  by  either  party,  the  court  may  order  that  the  whole  or  any  part  of 
the  clerk's  fee  for  preparing  the  transcript  shall  be  paid  by  the  offending  party. 

Whenever  it  shall  be  necessary  or  proper,  in  the  opinion  of  the  judge  of 
the  circuit  court,  that  original  papers  of  any  kind  should  be  inspected  by  the 
Court  of  Appeals,  such  judge  may  make  such  rule  or  order  for  the  safe- 
keeping, transporting  and  return  of  such  original  papers  as  to  him  may  seem 
proper,  and  the  Court  of  Appeals  will  receive  and  consider  such  original 
papers  in  connection  with  the  transcript  of  the  record. 

§  55-  Upon  motion  of  either  party  and  a  sufficient  showing  of  reason  or 
necessity  therefor,  the  court  to  which  an  appeal  is  taken  may  continue  in 
force  the  award,  judgment  or  order  appealed  from,  pending  its  decision  of 
such  appeal. 

§  56.  Any  party  in  interest  may  file  in  the  circuit  court  of  the  county  in 
which  the  injury  occurred  a  certified  copy  of  a  memorandum  of  agreement 
approved  by  the  board  or  of  an  order  or  decision  of  the  board,  or  of  an 
award  of  the  board  unappealed  from,  or  of  an  award  of  the  board  rendered 
upon  an  appeal,  whereupon  said  court  shall  render  judgment  in  accordance 
therewith  and  notify  the  parties.  Such  judgment  shall  have  the  same  effect 
and  all  proceedings  in  relation  thereto  shall  thereafter  be  the  same  as  though 
said  judgment  had  been  rendered  in  a  suit  duly  heard  and  determined  by  said 
court. 

Any  such  judgment  of  said  circuit  court  unappealed  from  or  affirmed 
on  appeal  or  modified  in  obedience  to  the  mandate  of  the  Appellate  Court, 
shall  be  modified  to  conform  to  any  decision  of  the  board,  ending,  diminishing 
or  increasing  any  weekly  payment  under  the  provisions  of  Section  21  of  this 
Act,  upon  a  presentation  to  it  of  a  certified  copy  of  such  decision. 

§  57.  If  the  board  or  any  court  before  whom  any  proceedings  are 
brought  under  this  act  shall  determine  that  such  proceedings  have  been 
brought,  prosecuted  or  defended  without  reasonable  ground,  it  may  assess 
the  whole  cost  of  the  proceedings  upon  the  party  who  has  so  brought,  prose- 
cuted or  defended  them. 


§  58.  The  board,  or  arty  member  thereof,  may,  upon  the  application  of 
either  party,  or  upon  its  own  motion,  appoint  a  disinterested  and  duly  qualified 
physician  or  surgeon  to  make  any  necessary  medical  examination  of  the  em- 
ploye and  to  testify  in  respect  thereto.  Said  physician  or  surgeon  shall  be 
allowed  traveling  expenses  and  a  reasonable  fee  to  be  fixed  by  the  board,  but 
not  exceeding  $10  for  each  examination  and  report,  but  the  board  may  allow 
additional  reasonable  amounts  in  extraordinary  cases. 

The  fees  and  expenses  of  such  physician  or  surgeon  shall  be  paid  out 
of  the  maintenance  fund. 

§  59.  All  fees  of  attorneys  and  physicians  and  charges  of  hospitals  under 
this  Act  shall  be  subject  to  the  approval  of  the  board.  No  attorney's  fees 
shall  be  allowed  or  approved  against  any  party  or  parties  not  represented  by 
such  attorney,  nor  exceeding  an  amount  equal  to  15%  of  the  amount  of  the 
first  $1,000  or  fraction  thereof  recovered,  or  10%  of  the  excess  of  such  recov- 
ery, if  any,  over  $1,000.  The  board  may  deny  or  reduce  an  attorney's  fee 
upon  proof  of  solicitation  of  employment. 

§  60.  All  questions  arising  under  this  act,  if  not  settled  by  agreement  of 
the  parties  interested  therein,  with  the  approval  of  the  board,,  shall  be  de- 
termined by  the  board  except  as  otherwise  herein  provided  for. 

§61.  Every  employer  subject  to  this  Act  shall  hereafter  keep  a  record  of 
all  injuries,  fatal  or  otherwise,  received  by  his  employes  in  the  course  of  their 
employment.  Within  one  week  after  the  occurrence  and  knowledge  thereof, 
as  provided  in  Sections  33-36,  of  an  injury  to  an  employe,  causing  his  absence 
from  work  for  more  than  one  day,  a  report  thereof  shall  be  made  in  writing* 
and  mailed  to  the  board  on  blanks  to  be  procured  from  the  board  for  the 
purpose. 

Upon  the  termination  of  the  disability  of  the  injured  employe,  or  if  the 
disability  extends  beyond  a  period  of  sixty  days,  then  also  at  the  expiration 
of  such  period,  the  employer  shall  make  a  supplementary  report  to  the  board 
on  blanks  to  be  procured  from  the  board  for  the  purpose. 

The  said  report  shall  contain  the  name,  nature  and  location  of  the  busi- 
ness of  the  employer,  and  name,  age,  sex,  wages  and  occupation  of  the 
injured  employe,  and  shall  state  the  date  and  hour  of  the  accident,  causing  the 
injury,  the  nature  and  cause  of  the  injury,  and  such  other  information  as  may 
be  required  by  the  board. 

Any  employer  subject  to  this  act  who  refuses  or  wilfully  neglects  to  make 
the  report  required  by  this  section  shall  be  liable  for  a  fine  of  not  more  than 
$25  for  each  such  refusal  or  neglect. 

§  62.  Any  person  who  shall  knowingly  file,  cause  to  be  filed,  or  permit  to 
be  filed,  any  false  or  fraudulent  claim,  on  his  behalf,  to  compensation  or  other 
benefits  under  this  Act,  or  who  shall  by  fraud,  deceit  or  misrepresentation 
procure  or  cause  to  be  made  or  shall  receive  any  payments  of  compensation 
or  other  benefits  under  this  act  to  which  the  recipient  is  not  lawfully  entitled, 
or  shall  conspire  with,  aid  or  abet  another  so  to  do,  shall  be  guilty  of  a 
misdemeanor. 

Any  person  who  shall  by  deceit  or  misrepresentation  and  with  intent  to 
defraud,  cause  or  procure  or  conspire  with,  aid  or  abet  another  in  so  causing 


or  procuring,  any  person  entitled  to  compensation  or  other  benefits  under  this 
Act  to  omit  to  title  claim  thereto  or  to  accept  the  payment  of  a  less  sum 
than  that  to  which  he  may  be  lawfully  entitled  to  thereunder,  shall  be  guilty 
of  a  misdemeanor. 

Any  person  guilty  of  a  misdemeanor  as  defined  in  this  section  shall,  upon 
conviction,  be  punishable  by  a  fine  of  not  less  than  $50  nor  more  than  $500,  or 
imprisonment  of  not  less  than  ten  nor  more  than  ninety  days,  in  the  dis- 
cretion of  the  jury. 

§63.  Every  employer  under  this  Act  shall  either  insure  and  keep  in- 
sured his  liability  for  compensation  hereunder  in  some  corporation,  association 
or  organization  authorized  to  transact  the  business  of  workmen's  compensa- 
tion insurance  in  this  State,  or  shall  furnish  to  the  board  satisfactory  proof 
of  his  financial  ability  to  pay  direct  the  compensation  in  the  amount  and 
manner  and  when  due  as  provided  for  in  this  Act.  In  the  latter  case,  the 
board  shall  require  the  deposit  of  an  acceptable  security,  indemnity  or  bond 
to  secure  to  such  an  extent  as  the  board  may  direct,  the  payment  of  com- 
pensation liabilities  as  they  are  incurred. 

Every  employer  accepting  the  provisions  of  this  act  shall  at  the  time  of 
such  acceptance  file  with  the  board  in  substantially  the  form  prescribed  by  it, 
and  annually  thereafter,  or  as  often  as  may  be  necessary,  evidence  of  his 
compliance  with  the  provisions  of  this  section  and  all  others  relating  thereto. 
Until  these  provisions  are  complied  with,  the  employer,  shall,  from  the  date 
of  his  acceptance  of  the  act,  be  liable  to  an  employe  either  for  compensation 
under  this  Act  or  at  law  in  the  same  manner  as  if  the  employer  had  refused 
to  accept  the  provisions  of  this  Act.  Claim  of  compensation  in  such  cases 
shall  be  deemed  a  waiver  of  the  right  to  proceed  at  law  and  the  institution  of 
an  action  at  law  shall  be  deemed  a  waiver  of  all  claim  to  compensation. 

§  64.  Whenever  an  employer  has  complied  with  the  provisions  of  Section 
63,  relating  to  self-insurance,  the  board  shall  issue  to  such  employer  a  certifi- 
cate which  shall  remain  in  force  for  a  period  fixed  by  the  board,  but  the 
board  may,  upon  at  least  sixty  days'  notice  and  a  hearing  to  the  employer, 
revoke  the  certificate  upon  satisfactory  evidence  for  such  revocation  having 
been  presented.  The  board  may  thereafter,  upon  petition  of  the  employer 
and  a  hearing,  grant  a  new  certificate,  but  the  employer  shall  not,  as  a  matter 
of  right,  be  entitled  to  a  hearing  for  this  purpose  sooner  than  six  months 
after  a  previous  revocation  of  his  certificate. 

Authorization  to  make  payments  of  compensation  direct  may  be  granted 
either  as  to  the  employer's  entire  risk,  or  as  to  such  part  or  class  thereof  as 
the  board  may  direct  in  its  certificate.  In  the  latter  case  the  board  shall 
determine  the  extent  to  which  and  the  manner  in  which  the  remainder  of  his 
said  risk  shall  be  insured.  Any  employer  authorized  to  make  payments  of 
compensation  direct,  may,  for  his  own  protection,  independently  insure  the 
whole  or  any  part  or  character  of  such  payments. 

§  65.  For  the  purposes  of  complying  with  the  provisions  of  Section  63 
groups  of  employers  are  hereby  authorized  to  form  either  among  themselves 
or  with  employers  in  other  states  Mutual  Insurance  Associations  or  Reciprocal 
or  Inter-insurance  Exchanges  subject  to  the  general  laws  of  this  State  re- 
lating to  such  Mutual  Insurance  Associations  or  Reciprocal  or  Inter-insurance 


31 

Exchanges  and  such  reasonable  conditions  and  restrictions,  not  inconsistent 
therewith,  as  may  be  fixed  by  the  board.  Membership  in  such  Mutual  In- 
surance Associations  or  Reciprocal  or  Inter-insurance  Exchanges  so  approved, 
together  with  evidence  of  the  payment  of  premiums  due,  shall  be  evidence  of 
compliance  with  Section  63. 

The  board  shall  have  power  in  any  case  to  require  any  Mutual  Insurance 
Association  or  Reciprocal  or  Inter-insurance  Exchange  to  purchase  an  annuity 
or  to  effect  re-insurance  with  a  company  authorized  to  transact  insurance  in 
this  State  or  to  make  such  deposit  with  a  bank  or  trust  company  of  this  State 
as  shall  in  either  case  be  approved  by  said  board  for  the  purpose  of  fully 
securing  the  payment  of  all  deferred  installments  upon  any  claim  for  com- 
pensation. 

Any  unreasonable  failure  or  delay  in  securing  the  payment  of  any  de- 
ferred installments  of  compensation  after  request  has  been  made  by  such 
board  as  provided  in  this  action,*  shall,  when  reported  to  the  Insurance  Com- 
missioner, constitute  grounds  for  suspension  or  revocation  of  the  insurer's 
license  to  do  business  in  this  State. 

§66.  Subject  to  the  approval  of  the  board  any  employer  may  enter  into 
or  continue  any  agreement  with  his  employe  to  provide  a  system  of  compen- 
sation, benefit  or  insurance  in  lieu  of  the  compensation  and  insurance  pro- 
vided by  this  act.  No  such  substitute  system  shall  be  approved  unless  it 
confers  benefits  upon  injured  employes  at  least  equivalent  to  the  benefits 
provided  by  this  act,  nor  if  it  requires  contributions  from  the  employes,  unless 
it  confers  benefits  in  addition  to  those  provided  under  this  Act  at  least  com- 
mensurate with  such  contributions. 

Such  substitute  system  may  be  terminated  by  the  board  on  reasonable 
notice  and  hearing  to  the  interested  parties  if  it  shall  appear  that  the  same  is 
not  fairly  administered,  or  if  its  operation  shall  disclose  latent  defects  threat- 
ening its  solvency,  or  if  for  any  substantial  reason  it  fails  to  accomplish  the 
purpose  of  this  Act;  and  in  this  case  the  board  shall  determine  upon  the 
proper  distribution  of  all  remaining  assets,  if  any,  subject  to  the  right  of  any 
party  in  interest  to  take  an  appeal  to  the  courts. 

§  67.  All  policies  insuring  the  payment  of  compensation  under  this  Act 
must  contain  a  clause  to  the  effect  that  as  between  the  employer  and  the 
insurer  the  notice  to  or  knowledge  of  the  occurrence  of  the  injury  on  the  part 
of  the  insured  shall  be  deemed  notice  or  knowledge,  as  the  case  may  be,  on  the 
part  of  the  insurer;  that  jurisdiction  of  the  insured  for  the  purpose  of  this  Act 
shall  be  jurisdiction  of  the  insurer;  and  that  the  insurer  shall  in  all  things 
be  bound  by  and  subject  to  the  awards,  judgments  or  decrees  rendered  against 
such  insured. 

§68.  No  policy  of  insurance  against  liability  for  compensation  arising 
under  this  act  shall  be  issued  unless  it  contains  the  agreement  of  the  insurer 
that  it  will  promptly  pay  to  the  person  entitled  to  same  all  benefits  conferred 
by  this  Act,  and  all  installments  of  the  compensation  that  may  be  awarded  or 
agreed  upon,  and  that  the  obligation  shall  not  be  affected  by  any  default  in 
the  giving  of  any  notice  required  by  such  policy,  or  otherwise.  Such  agreement 


*  Evidently   intended   for  "section." 


32 

shall  be  construed  to  be  a  direct  promise  by  the  insurer  to  person  entitled  to 
compensation  enforceable  in  his  name. 

§  69.  Every  policy  for  the  insurance  of  the  compensation  herein  provided, 
against  liability  therefor,  shall  be  deemed  to  be  made  subject  to  the  pro- 
visions of  this  act.  No  corporation,  association  or  organization  shall  enter 
into  any  such  policy  of  insurance  unless  its  form  shall  have  been  approved 
by  the  board. 

§  70.  Every  policy  or  contract  of  workmen's  compensation  insurance 
under  this  Act,  issued  or  delivered  in  this  State,  shall  cover  the  entire  liability 
of  the  employer  for  compensation  under  this  Act  to  each  and  all  of  his  em- 
ployes covered  by  such  policy,  except  as  otherwise  provided  in  Section  64 
hereof,  regardless  of  whatever  other  contingencies  may  be  insured  or  pro- 
vided for  by  riders  attached  thereto  or  endorsements  made  thereon.  On  the 
face  of  every  such  policy  shall  be  printed  conspicuously  tfre  words,  "Insur- 
ance under  this  policy  is  in  Class  (designating  the  same)  of  the  Company's 
Workmen's  Compensation  Classification  Manual,"  and  in  the  blank  thus 
provided  the  number  or  other  designation  in  said  manual  under  which  the  said 
policy  is  written  shall  be  placed  before  the  policy  is  issued.  If  more  than  one 
class  of  risk  be  covered  by  the  same  policy,  the  separate  risks  and  their  cor- 
responding manual  classifications  shall  be  stated  in  the  same  manner. 

§71-  No  such  policy  of  insurance  or  rider  to  be  used  therewith  shall  be 
issued  or  delivered  until  a  copy  of  the  form  thereof  has  been  filed  with  the 
Commissioner  of  Insurance  at  least  thirty  days  prior  to  such  issue  or  de- 
livery, unless  before  the  expiration  of  thirty  days  the  said  Commissioner 
shall  have  approved  the  form  thereof  in  writing;  nor  if  the  Commissioner  of 
Insurance  notifies  the  company  in  writing  that  in  his  opinion  the  form  of 
said  policy  or  rider  does  not  comply  with  the  laws  of  this  Commonwealth, 
specifying  fully  the  reasons  for  his  opinion ;  provided,  that  upon  petition  of 
the  company  the  decision  of  the  said  Commissioner  shall  be  subject  to  re- 
view by  the  Franklin  Circuit  Court  and  to  appeal  therefrom  to  the  Court  of 
Appeals. 

§  72.  The  rates  charged  by  all  carriers  of  insurance,  including  the 
parties  to  any  mutual,  inter-indemnity,  inter-insurance,  reciprocal  or  other 
plan  or  scheme,  writing  insurance  against  the  liability  for  compensation  under 
this  Act,  for  insurance  against  such  liability  and  against  the  liability  of  em- 
ployers to  employes  where  either  or  both  have  not  elected  to  furnish  or  ac- 
cept compensation  under  this  Act,  shall  be  fair,  reasonable  and  adequate,  with 
due  allowance  for  merit  rating,  and  all  risks  of  the  same  kind  and  degree  of 
hazard  shall  be  written  at  the  same  rate  by  the  same  carrier.  No  policy  of 
insurance  against  liability  for  compensation  under  this  act  shall  be  valid  until 
the  rate  thereof  has  been  approved  by  the  board,  nor  shall  any  such  carrier 
of  insurance  write  any  such  policy  or  contract  until  its  basic  and  merit  rating 
schedule  have  been  filed  with,  approved  and  not  subsequently  disapproved  by 
the  board.  Each  such  insurance  carrier  shall  report  to  the  board*  State  In- 
surance Commissioner  in  accordance  with  such  reasonable  rules  as  the  State 
Insurance  Commissioner  may  at  any  time  prescribe,  for  the  purpose  of 


*  So  in  certified  copy. 


33 

determining  the  solvency  of  the  carrier,  and  the  adequacy  of  its  rates;  for 
such  purposes  the  board  or  State  Insurance  Commissioner  may  inspect  the 
books  and  records  of  such  insurance  carrier,  and  examine  its  officers,  agents 
and  directors  under  oath. 

§  73.  Election  to  operate  under  the  provisions  of  this  Act  shall  be  effected 
by  the  employer  by  filing  with  the  board  the  following  notice,  to-wit : 

"(Name  of  employer)  elects  to  operate  under  the  provisions  of  Chapter 

,  Acts  of  1916,  commonly  known  as  the  Workmen's  Compensation 

Act,  this  election  being  effective  as  of  the  day  of  and  covering 

(here  insert  name  of  industry,  business  or  operation  on  which  election  is 
made)." 

In  addition  to  the  name  of  each  industry,  business  or  operation  as  to 
which  such  election  is  filed,  there  shall  also  be  stated  in  the  notice  with 
reference  thereto  (i)  its  location  and  address  of  chief  office,  (2)  average 
number  of  employes  during  preceding  twelve  months,  (3)  kind  of  business 
being  conducted,  (4)  method  of  securing  payments  of  compensation  to  em- 
ployes which  the  employer  elects  to  adopt. 

Such  notice  shall  be  in  writing  and  signed  by  the  employer,  if  an  indi- 
vidual, by  any  partner  if  a  partnership,  or  by  the  chief  officer  or  agent  within 
this  State  if  a  corporation. 

§  74.  Election  to  operate  under  the  provisions  of  this  Act  shall  be  effected 
by  the  employe  by  signing  the  following  notice,  to-wit: 

"I  hereby  agree  with  (name  of  employer)  to  accept  the  provisions  of 
Chapter  Acts  of  1916,  commonly  known  as  the  Kentucky  Work- 
men's Compensation  Act." 

The  election  shall  be  effective  from,  and  including,  the  date  of  signing, 
which  shall  be  inserted  opposite  the  employe's  signature.  In  case  an  employe 
be  unable  to  write,  his  mark  shall  be  witnessed  by  a  third  person,  who  shall  at 
the  time  read  the  notice  to  the  employe.  Any  number  of  employes  may  sign 
the  same  notice,  provided  that  there  be  conspicuously  written  or  printed  at  the 
top  of  each  page  thereof  on  which  signatures  appear  a  copy  of  the  above  form 
of  notice.  If  the  employment  be  intermittent  or  be  temporarily  suspended, 
the  original  acceptance  of  the  employe  shall  continue  effective  in  subsequent 
employment  under  the  same  employer. 

Identification  of  such  signature  or  mark  of  the  employe  shall  constitute 
conclusive  proof  of  his  election  to  operate  under  the  provisions  of  this  Act, 
in  any  hearing  or  proceeding  in  which  such  election  may  be  material  or  in 
issue. 

§  75.  All  such  notices  of  election  by  employes  shall,  when  executed,  be 
preserved  by  the  employer  during  the  continuation  of  the  employment  of  those 
employes  whose  names  are  subscribed  thereto.  Any  person  who  shall,  with 
fraudulent  intent,  wilfully  destroy,  convert  or  secrete  any  such  notice,  or 
wilfully  deprive  the  owner  or  his  agent  thereof,  or  erase  or  obliterate  any  part 
thereof,  shall  be  guilty  of  a  misdemeanor  and  upon  conviction  be  punishable 
by  a  fine  of  not  less  than  $50  nor  more  than  $200,  or  imprisonment  of  not  less 
than  ten  days  nor  more  than  ninety  days,  in  the  discretion  of  the  jury. 

§  76.  At  any  time  after  electing  to  operate  under  the  provisions  of  this 
Act,  either  party  may  withdraw  such  election,  the  employer  by  filing  written 


34 

notice  with  the  board  stating  the  date  when  such  withdrawal  is  effective  and 
the  industry,  business  or  operation  covered  thereby,  by  personal  written  notice 
to  the  employe  or  posting  in  conspicuous  places  about  such  place  of  business 
not  less  than  one  week  next  preceding  the  date  on  which  the  same  is  to  become 
effective  copies  of  such  notice  of  withdrawal;  the  employe  desiring  to  with- 
draw such  election  shall  file  with  the  employer  a  written  notice  of  withdrawal, 
stating  the  date  when  such  withdrawal  is  to  become  effective.  Following  the 
filing  or  giving  of  such  notices,  the  status  of  the  party  withdrawing  shall 
become  the  same  as  if  his  former  election  had  not  been  made;  provided, 
however,  that  withdrawal  shall  not  be  effective  as  to  an  injury  sustained  less 
than  one  week  after  the  filing  thereof. 

An  employer,  while  operating  under  the  provisions  of  this  Act,  shall  at  all 
times  keep  posted  in  conspicuous  places  about  his  place  of  business  notices  to 
that  effect,  in  such  form  as  may  be  prescribed  by  the  board. 

§  76a.  Every  employer  affected  by  the  provisions  of  this  Act  who  does 
not  elect  to  operate  thereunder  shall  not,  in  any  suit  at  law  by  an  employe 
or  his  representative  to  recover  damages  for  personal  injury  or  death  by 
accident  arising  out  of  and  in  the  course  of  his  employment,  be  permitted  to 
defend  any  such  suit  at  law  upon  any  or  all  of  the  following  grounds : 

(1)  That  the  employe  was  guilty  of  contributory  negligence. 

(2)  That  the  injury  was  caused  by  the  negligence  of  a  fellow  servant  of 
the  injured  employe. 

(3)  That  the  employe  has  assumed  the  risk  of  injury. 

§  76b.  Every  employe  affected  by  the  provisions  of  this  act  who  does  not 
elect  to  operate  thereunder,  and  his  representative  in  case  of  death,  shall,  in 
any  suit  at  law  to  recover  damages  for  personal  injury  or  death  by  accident 
arising  out  of  and  in  the  course  of  his  employment  against  an  employer  elect- 
ing to  operate  under  the  provisions  of  this  Act,  proceed  at  law  as  if  this  act 
had  not  been  enacted,  and  the  employer  may  avail  himself  of  the  defenses  of 
contributory  negligence,  negligence  of  a  fellow  servant  and  assumption  of 
risk  as  such  defenses  now  exist  at  common  law. 

§  77.  No  agreement  by  any  employe  to  pay  any  portion  of  the  insurance 
premium  paid  by  his  employer  shall  be  valid,  and  any  employer  who  deducts 
any  portion  of  such  premium  from  the  wages  or  salary  of  any  employe  entitled 
to  the  benefits  of  this  Act  shall  be  guilty  of  a  misdemeanor  and  upon  con- 
viction thereof  shall  be  fined  not  more  than  $100,  for  each  offense. 

§  78.  Upon  the  request  of  the  board,  the  Attorney  General,  or,  under  his 
direction,  the  Commonwealth's  Attorney  or  County  Attorney  of  any  county, 
shall  institute  and  prosecute  the  necessary  actions  or  proceedings  for  the 
enforcement  of  any  of  the  provisions  of  this  Act,  arising  within  the  county 
or  counties  of  their  respective  jurisdictions,  and  shall  defend  in  like  manner 
all  suits,  actions  or  proceedings  brought  against  the  board  or  the  members 
thereof  in  their  official  capacity. 

§  79.  The  board  shall  prepare  and  furnish,  free  of  charge,  blank  forms 
and  provide  its  rules  for  their  distribution,  so  that  the  same  may  be  readily 
available,  of  all  notices,  claims,  reports,  proofs  and  other  blank  forms  and 
literature  which  it  may  deem  proper  and  requisite  to  the  efficient  adminis- 


35 

tration  of  this  Act.  It  may  authorize  the  publication  and  distribution  of  such 
blanks  by  employers  and  their  insurers  in  manner  and  form  provided  by  it. 

§  80.  Annually  on  or  before  the  I5th  day  of  December  the  board  shall 
make  a  report  to  the  Governor  for  the  preceding  fiscal  year,  which  shall 
include  a  statement  of  the  number  of  awards  made  and  of  claims  rejected  by 
it,  a  general  statement  of  the  causes  of  accident  leading  to  the  injuries  for 
which  awards  were  made  or  rejected  claims  based,  and  a  detailed  statement  of 
the  disbursements  from,  and  unpaid  expenses  chargeable  against,  the  main- 
tenance fund  and  its  condition,  together  with  any  other  information  which 
the  board  deems  proper  to  call  to  the  attention  of  the  Governor,  including  any 
recommendations  it  may  have  to  make,  and  it  shall  be  the  duty  of  the  board 
to  publish  and  distribute  among  employers  and  employees  such  general  infor- 
mation as  to  the  business  transacted  by  the  department  as  may  be  useful  and 
necessary;  provided,  however,  that  an  abuse  of  such  right  to  so  publish  and 
distribute  information  shall  constitute  political  activity  within  the  meaning  of 
Section  41  hereof. 

The  annual  report  shall  not  exceed  five  hundred  copies.  All  printing  of 
the  department  shall  be  done  by  the  contractor  or  contractors  for  public 
printing,  subject  to  such  provisions  of  the  general  laws  governing  public 
printing  as  may  be  applicable  thereto,  and  shall  be  paid  for  out  of  any  funds 
in  the  State  treasury  not  otherwise  appropriated. 

§81.  This  act  shall  become  effective  on  the  first  day  of  August,  1916, 
except  as  to  Sections  39  to  47,  hereof,  both  inclusive,  relating  to  the  appoint- 
ment of  the  board  and  their  rights,  powers  and  duties,  an  emergency  is  de- 
clared to  exist,  and  the  same  shall  become  effective  on  the  first  day  of  April, 
1916. 

Elections  by  employers  and  employes  and  contracts  of  insurance  entered 
into  in  conformity  with  the  provisions  of  this  Act,  between  April  1st,  1916, 
and  August  1st,  1916,  to  become  effective  on  or  after  August  1st,  1916, 
shall  be  valid  and  enforceable. 

§  82.  For  the  purpose  of  paying  the  salaries  and  expenses  of  the  board 
and  its  necessary  employes  in  making  preparation  and  putting  this  Act  into 
operation  the  sum  of  $7,500  is  hereby  appropriated,  payable  out  of  any  funds 
in  the  State  treasury  not  otherwise  appropriated.  All  claims  for  salaries  or 
expenses,  when  approved  by  resolution  of  the  board,  and  countersigned  by  the 
chairman  thereof,  shall  be  presented  to  the  Auditor  of  Public  Accounts,  who 
shall  issue  his  warrant  in  payment  thereof.  All  such  claims  shall  show  to 
whom  and  for  what  service,  material  or  other  things  or  reason  such  amounts 
are  to  be  paid  and  shall  be  accompanied  by  voucher  checks  or  receipts  covering 
the  same  except  as  to  items  of  less  than  $1.00. 

§83.  For  the  purpose  of  paying  the  salaries  and  necessary  expenses  of 
the  board  and  its  assistants  and  employes  in  administering  and  carrying  out 
the  provisions  of  this  Act  an  administrative  fund  shall  be  created  and  main- 
tained in  the  following  manner: 

Sub-section  i.  Every  person,  partnership,  association,  corporation, 
whether  organized  under  the  laws  of  this  or  any  other  state  or  country,  com- 
pany, mutual  company  or  association,  the  parties  to  any  inter-indemnity  con- 
tract or  reciprocal  plan  or  scheme,  and  every  other  insurance  carrier,  insuring 


36 

employers  in  this  state  against  liability  for  personal  injuries  to  their  employes, 
or  death  caused  thereby,  under  the  provisions  of  this  Act,  shall,  as  herein- 
after provided,  pay  a  tax  upon  the  premiums  received,  whether  in  cash  .or 
notes, -in  this  State  or  on  account  of  business  done  in  this  State,  for  such 
insurance  in  this  State,  at  the  rate  of  4  per  cent,  of  the  amount  of  such  pre- 
miums, which  tax  shall  be  in  lieu  of  all  other  taxes  on  such  premiums,  which 
tax  shall  be  assessed  and  collected  as  hereinafter  provided.  Provided,  how- 
ever, that  such  insurance  carriers  shall  be  credited  with  all  cancelled  or  re- 
turned premiums  actually  refunded  during  the  year  on  such  insurance,  and 
with  premiums,  on  re-insurance  with  companies  authorized  and  licensed  to 
transact  business  in  Kentucky,  which  re-insurance  shall  be  reported  by  the 
re-insurer;  but  no  credit  shall  be  allowed  for  re-insurance  in  companies  not 
licensed  to  transact  business  in  Kentucky. 

Sub-section  2.  Every  such  insurance  carrier  shall,  for  the  six  months 
ending  October  3ist,  1916,  for  the  eight  months  ending  June  3Oth,  1917,  and 
annually  thereafter,  make  a  return  verified  by  the  affidavit  of  its  president  and 
secretary,  or  other  chief  officers  or  agents,  to  the  Commissioner  of  In- 
surance, stating  the  amount  of  all  such  premiums  and  credits  during  the  period 
covered  by  such  return.  Every  insurance  carrier  required  to  make  such  return 
shall  file  the  same  with  the  Commissioner  of  Insurance  within  thirty  days 
aftec  the  close  of  the  period  covered  thereby  and  shall  at  the  same  time  pay 
into  the  State  treasury  a  tax  of  $4  on  each  $100  of  such  premium  ascertained 
as  provided  in  subsection  I  hereof,  less  returned  premiums  on  cancelled 
policies  and  re-insurance  with  other  companies  licensed  to  transact  business  in 
this  State,  and  upon  payment  file  a  statement  with  the  Secretary  of  State. 
Upon  receiving  such  "payments  the  State  Treasurer  shall  place  the  whole 
thereof  to  the  credit  of  the  fund  for  the  administration  of  this  Act. 

Sub-section  3.  If  any  such  insurance  carrier  shall  fail  or  refuse  to  make 
the  return  required  by  this  Act,  the  said  Commissioner  of  Insurance  shall 
assess  the  tax  against  such  insurance  carrier  at  the  rate  herein  provided  for, 
on  such  amount  of  premiums  as  he  may  deem  just,  and  the  proceedings 
thereon  shall  be  the  same  as  if  the  return  had  been  made. 

Sub-section  4.  If  any  such  insurance  carrier  shall  withdraw  from  busi- 
ness in  this  State  before  the  tax  shall  fall  due,  as  herein  provided,  or  shall  fail 
or  neglect  to  pay  such  tax,  the  Commissioner  of  Insurance  shall  at  once  pro- 
ceed to  collect  the  same,  and  he  is  hereby  empowered  and  authorized  to  employ 
such  legal  process  as  may  be  necessary  for  that  purpose,  and  when  so  collected 
he  shall  pay  the  same  into  the  State  treasury.  The  suit  may  be  brought  by  the 
Commissioner  of  Insurance,  in  his  official  capacity,  in  any  court  of  this  State 
having  jurisdiction;  reasonable  attorney's  fees  may  be  taxed  as  costs  therein, 
and  process  may  issue  to  any  county  of  the  State,  and  may  be  served  as  in  civil 
actions,  or  in  cases  of  unincorporated  associations,  partnerships,  inter- 
indemnity  contracts  or  other  plan  or  scheme,  upon  the  principal  agent  of  the 
parties  thereto. 

Sub-section  5.  Any  person  or  persons  who  shall  in  this  State  act  or 
assume  to  act  as  agent  for  any  such  insurance  carried  whose  authority  to  do 
business  in  this  State  has  been  suspended,  while  such  suspension  remains  in 
force,  or  shall  neglect  or  refuse  to  comply  with  any  of  the  provisions  of  this 


37 

section  obligatory  upon  such  persons  or  party,  or  who  shall  wilfully  make  a 
false  or  fraudulent  statement  of  the  business  or  condition  of  any  such  insur- 
ance carrier  or  false  or  fraudulent  return  as  herein  provided,  shall  be  deemed 
guilty  of  a  misdemeanor,  and  upon  conviction  shall  be  punished  by  a  fine  of 
not  less  than  $100  nor  more  than  $1,000,  or  by  imprisonment  for  not  less  than 
ten  nor  more  than  ninety  days,  or  both  such  fine  and  imprisonment,  in  the 
discretion  of  the  jury. 

Sub-section  6.  Whenever  by  this  Act  any  officer  is  required  to  give  any 
notice  to  an  insurance  carrier,  the  same  may  be  given  by  delivery,  or  by  mail- 
ing by  registered  letter  properly  addressed  and  stamped,  to  the  principal  office 
or  chief  agent  of  such  insurance  carrier  within  this  State,  or  to  its  home 
office,  or  to  the  secretary,  general  agent  or  chief  officer  thereof  in  the  United 
States. 

Sub-section  7.  Any  insurance  carrier  liable  to  pay  a  tax  upon  premiums 
under  this  Act  shall  not  be  liable  to  pay  any  other  or  further  tax  upon  such 
premiums,  or  on  account  thereof,  under  any  other  law  of  this  State. 

Sub-section  8.  Every  employer  carrying  his  own  risk  under  the  pro- 
visions of  Section  63  shall,  under  oath,  report  to  the  board  his  pay  roll  subject 
to  the  provisions  of  this  Act.  Such  report  shall  be  made  in  form  prescribed 
tfy  the  board  and  at  the  times  herein  provided  for  premium  reports  by  insurer. 
The  board  shall  assess  against  such  pay  roll  a  maintenance  fund  tax  com- 
puted by  taking  4  per  cent  of  the  basic  premiums  chargeable  against  the  same 
or  most  similar  industry  or  business,  taken  from  the  manual  insurance  rates 
for  compensation  then  in  force  in  this  State. 

Sub-section  9.  The  board  shall  not  be  authorized  to  incur  expenses  or 
indebtedness  during  any  period,  chargeable  against  the  maintenance  fund,  in 
excess  of  the  premium  tax  payable  to  such  fund  for  the  same  period.  If  it 
be  ascertained  that  the  tax  collected  for  a  given  period  exceeds  the  total 
expense  chargeable  against  the  maintenance  fund  under  the  provisions  of  this 
act,  the  board  may  authorize  a  corresponding  credit  upon  collections  for  the 
succeeding  period. 

§84.  Kentucky  Employes'  Insurance  Association. — For  the  purpose  of 
carrying  out  the  provisions  of  this  act,  and  of  affording  to  employers  a 
method  of  insuring  their  liability  as  required  thereby,  the  Kentucky  Em- 
ployes' Insurance  Association  is  hereby  created  a  body  corporate  with  the 
powers  provided  herein  and  with  all  the  general  corporate  powers  incident 
thereto. 

§85.  The  Board  of  Directors  of  the  Association  shall  consist  of  15 
members  thereof,  three  of  whom  shall  be  appointed  by  the  Governor,  and  12 
of  whom  shall  be  elected  by  ballot  of  the  subscribers,  in  accordance  with 
Section  207  of  the  Constitution.  Of  the  original  directors  appointed  by  the 
Governor,  one  shall  be  appointed  for  one  year,  one  for  two  years,  and  one 
for  three  years ;  annually  thereafter  one  director  shall  be  appointed  for  a  term 
of  three  years.  Election  of  directors  by  the  subscribers  shall  be  held  at  such 
times  and  in  such  manner  as  the  by-laws  shall  provide. 

§86.  The  appointed  directors  shall,  within  thirty  days  of  the  subscrip- 
tion of  twenty-five  employers,  call  the  first  meeting  of  the  subscribers  by  a 


notice  in  writing  mailed  to  each  subscriber  at  his  place  of  business  not  less 
than  ten  days  before  the  date  fixed  for  the  meeting. 

§87.  At  the  first  meeting  of  the  subscribers  the  remaining  twelve  di- 
rectors shall  be  elected.  The  board  of  directors  may  thereafter  exercise  power 
as  such  and  may  adopt  by-laws  not  inconsistent  with  the  provisions  of  this 
Act. 

§  88.  The  board  of  directors  shall  annually  choose  by  ballot  a  president, 
who  shall  be  a  member  of  the  board,  a  secretary,  a  treasurer,  and  such  other 
officers  as  the  by-laws  shall  provide. 

§89.  Seven  or  more  of  the  directors  shall  constitute  a  quorum  for  the 
transaction  of  business. 

Vacancies  in  any  office  may  be  filled  in  such  manner  as  the  by-laws  shall 
provide. 

§  90.    Any  employer  in  the  Commonwealth  may  become  a  subscriber. 

§  91.  In  any  meeting  of  the  subscribers  each  subscriber  shall  be  entitled 
to  one  vote,  and  if  a  subscriber  has  250  employes  to  whom  the  association  is 
bound  to  pay  compensation  he  shall  be  entitled  to  two  votes,  and  he  shall 
be  entiled  to  one  additional  vote  for  each  additional  250  employes  to  whom 
the  association  is  bound  to  pay  compensation,  but  no  subscriber  shall  cast 
by  his  own  right  or  by  the  right  of  proxy,  more  than  10  votes. 

§92.  No  policy  shall  be  issued  by  the  association  until*  less  than  fifty 
employers  have  subscribed  who  have  not  less  than  five  thousand  employes 
to  whom  the  association  may  be  bound  to  pay  compensation. 

§93.  No  policy  shall  be  issued  until  a  list  of  the  subscribers,  with  the 
number  of  employes  of  each,  together  with  such  other  information  as  the 
Insurance  Commissioner  may  require,  shall  have  been  filed  at  the  insurance 
department,  nor  until  the  president  and  secretary  of  the  association  shall  have 
certified  under  oath  that  every  subscription  in  the  list  so  filed  is  genuine  and 
made  with  an  agreement  by  every  subscriber  that  he  will  take  the  policies 
subscribed  for  by  him,  within  thirty  days  of  the  granting  of  a  license  to  the 
association  by  the  Insurance  Commissioner  to  issue  policies. 

§  94.  The  board  of  directors  shall  distribute  the  subscribers  into  groups 
in  accordance  with  the  nature  of  the  business  and  the  degree  of  the  risk  of 
injury. 

Subscribers  within  each  group  shall  annually  pay  in  cash,  or  notes  abso- 
lutely payable,  such  premiums  as  may  be  required  to  pay  the  compensation 
herein  provided  for  the  injuries  which  may  occur  in  that  year. 

§95.  The  association  may  in  its  by-laws  and  policies  fix  the  contingent 
mutual  liability  of  the  subscribers  for  the  payment  of  losses  and  expenses  not 
provided  for  by  its  cash  funds;  but  such  contingent  liability  of  a  subscriber 
shall  not  be  less  than  an  amount  equal  to  and  in  addition  to  the  cash  premium. 

§  96.  If  the  association  is  not  possessed  of  cash  funds  above  its  unearned 
premiums  sufficient  for  the  payment  of  incurred  losses  and  expenses,  it  shall 
make  an  assessment  for  the  amount  needed  to  pay  such  losses  and  expenses 
upon  the  subscriber  liable  to  assesment  therefor  in  proportion  to  their  several 
liability. 


The  word  "not,"  in  bill  as  introduced,  is  omitted  from  certified  copy. 


Every  subscriber  shall  pay  his  proportional  part  of  any  assessments  which 
may  be  laid  by  the  association,  in  accordance  with  law  and  his  contract,  on 
account  of  injuries  sustained  and  expenses  incurred  while  he  is  a  subscriber. 

§97.  The  board  of  directors  may,  from  time  to  time,  by  vote,  fix  and 
determine  the  amount  to  be  paid  as  a  dividend  upon  policies  expiring  during 
each  year  after  retaining  sufficient  sums  to  pay  all  the  compensation  which 
may  be  payable  on  account  of  injuries  sustained  and  expenses  incurred. 

All  premiums,  assessments  and  dividends  shall  be  fixed  by  and  for  groups 
as  heretofore  provided  in  accordance  with  the  experience  of  each  group,  but 
all  the  funds  of  the  association  and  the  contingent  liability  of  all  the  sub- 
scribers shall  be  available  for  the  payment  of  any  claim  against  the  association. 

§  98.  Any  proposed  premium,  assessment,  dividend  or  distribution  of 
subscribers  shall  be  filed  with  the  insurance  department  and  shall  not  take 
effect  until  approved  by  Insurance  Commissioner  after  such  investigation  as 
he  may  deem  necessary. 

§  99.  The  board  of  directors  shall  make  and  enforce  reasonable  rules 
and  regulations  for  the  prevention  of  injuries  on  the  premises  of  subscribers, 
and  for  this  purpose  the  inspectors  of  the  association  shall  have  free  access 
to  all  such  premises  during  regular  working  hours. 

Any  subscriber  or  employe  aggrieved  by  any  such  rule  or  regulation  may 
petition  the  Workmen's  Compensation  Board  for  a  review  and  it  may  affirm, 
amend  or  annul  the  rule  or  regulation. 

§  loo.  If  any  officer  of  the  association  shall  falsely  make  oath  to  any 
certificate  required  to  be  filed  with  the  Insurance  Commissioner,  he  shall  be 
guilty  of  perjury. 

§  101.  This  act  shall  not  affect  any  causes  of  action  existing  or  action 
pending  on  August  I,  1916,  and,  its  application  as  between  employer  and 
employe,  except  as  otherwise  herein  provided,  shall  date  from  and  include 
August  i,  1916. 

§  102.  The  rule  of  law  requiring  strict  construction  of  statutes  in 
derogation  of  the  common  law  shall  not  be  applicable  to  the  provisions  of 
this  Act.  If  any  section  or  part  thereof  shall  be  held  invalid,  such  partial 
invalidity  shall  not  affect  the  Act  as  a  whole  or  any  other  section  or  part 
thereof. 

Approved  March  23rd,  1916. 

A.  O.  STANLEY, 

Governor. 
JAMES  D.  BLACK, 
President  of  the  Senate. 

H.  C.  DUFFY, 
Speaker  of  the  House  of  Representatives. 


Commonwealth  of  Kentucky 


OFFICE   OF    THE    SECRETARY    OF    STATE 


CERTIFICATE 

I,  JAMES  P.  LEWIS,  Secretary  of  State  for  the  Commonwealth  of 
Kentucky,  do  certify  that  the  foregoing  writing  has  been  carefully  compared 
by  me  with  the  original  record  thereof,  now  in  my  official  custody  as  secretary 
of  State  and  remaining  on  file  in  my  office,  and  found  to  be  a  true  and  correct 
copy  of  Senate  Bill  No.  40.  An  Act  to  provide  an  elective  system  of  work- 
men's compensation  for  industrial  accidents,  prescribing  the  manner  of  election 
and  the  rights  and  liabilities  of  employers,  employes  and  third  parties; 
making  provision  for  medical  and  surgical  care  of  injured  employes;  estab- 
lishing rates  of  compensation  for  personal  injuries  or  death,  etc. 

IN  WITNESS  WHEREOF,  I  have  hereunto  set  my  hand. 

Done  at  Frankfort  this  4th  day  of  April,  1916. 

J.  P.  LEWIS, 

Secretary  of  State. 

By  C.   J.    HOWES, 

Assistant  Secretary  of  State. 


UNIVERSITY'  OF  CALIFORNIA  LIBRARY 


